NBU: Inflation has not yet peaked
Kyiv • UNN
The National Bank of Ukraine reports that inflation has not yet peaked and that risks are growing. Inflation is forecast to rise to 9.7% in 2024, with a gradual decline to 5% in 2026.
The National Bank reported that the inflationary peak has not yet passed, and the inflationary risks for the coming months have increased. UNN writes about this with reference to the NBU's Inflation Report.
Given that inflation has not yet peaked, and that pro-inflationary risks have even increased in the coming months, the NBU considers it appropriate to remain cautious in its interest rate policy
The NBU explains that these are the factors that prompt them to keep the key policy rate at 13%.
Currently, inflation in Ukraine is 8.6% and continues to grow. It is forecast to reach 9.7% by the end of 2024.
At the same time, inflation will begin to decline in the spring of 2025. The NBU's forecast is for inflation to decline to 6.9% at the end of 2025 and reach the 5% target in 2026
Recall
The National Bank of Ukraine forecasts "moderate" exchange rate fluctuations in both directions. The NBU plans to use managed exchange rate flexibility and compensate for the structural shortage of foreign currency in the private sector to smooth out excessive exchange rate fluctuations.
