The National Bank of Ukraine (NBU) Board decided at a meeting on Jan. 25 to keep the key interest rate at 15% following a gradual decrease since July last year.
The key interest rate was lowered from 16% to 15% in December, but the NBU said at the time it does not plan to change it in 2024.
"This decision is in line with the need to further maintain exchange rate stability and moderate inflation in 2024, and bring it to the target range of 5% ± 1 pp," NBU Board Chairman Andrii Pyshnyi said at the briefing on Jan. 25.
He noted that inflation slowed down significantly last year, including due to the NBU's consistent monetary policy, namely measures to ensure exchange rate stability and the attractiveness of hryvnia assets.
"In November, inflation slowed to 5.1% year-on-year and remained at this level in December."
Pyshnyi also noted the role of large harvests, lower global energy prices, and the moratorium on tariff increases for some housing and utility services.
The NBU expects that inflation will remain moderate in 2024 and return to the target range in 2025.