Weekly Insight -- NBU raises key rate, signals cautious approach
The key monetary policy rate was increased by 100 bps to 15.5%, marking the third consecutive hike.
The NBU continues to emphasize uncertainty in the inflation trajectory and external funding flows, signalling a cautious stance on future monetary policy adjustments.
In addition to this increase, the regulator has adjusted the operational framework parameters of its interest rate policy. The interest rate on three-month deposits was raised by 200 bps, while the maximum volume of such instruments available to banks is expected to expand. This measure is designed to incentivize banks to raise interest rates on retail term deposits in hryvnia and stimulate their growth