Ukraine's central bank raised the main interest rate to 14.5% to curb inflation, challenging economic recovery amid war with Russia. Inflation hit 12% in December, driven by rising costs and power shortages.
Since Moscow’s full-scale invasion of Ukraine in 2022, Russia’s economy has surpassed expectations. But some experts say this image of resilience is a mirage crafted by the Kremlin.
By applying enough pressure now, the thinking goes, Ukraine and its backers can enter talks from a favorable position, and Russian President Vladimir Putin will be forced to engage in good-faith negotiations that end in a satisfactory settlement.
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Ukraine's National Bank (NBU) announced on Jan. 23 that it will raise the key policy rate from 13.5% to 14.5% per annum starting from Jan. 24, 2025.
The National Bank of Ukraine (NBU) has downgraded its inflation forecast from 6.9% to 8.4% for the end of 2025. This is announced in the NBU statement, Ukrainian News Agency reports. Due to the exhaustion of temporary factors of price pressure and the NBU ...
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Additionally, the NBU has updated its macroeconomic forecast, revising its end-2025 CPI expectations to 8.4% YoY, up from a previous forecast of 6.9%, and signalled its preparedness for two further hikes of 50 bps each in March and June.
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