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Ukraine Raises Interest Rate to Combat Soaring Inflation

1/24/2025

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Summary

Story summary

In a bold move to tackle soaring inflation, Ukraine's National Bank has increased its key interest rate from 13.5% to 14.5%. With inflation reaching 12% in December 2024, the bank is determined to stabilize the forex market and aims to lower inflation to 5% by 2026. However, the ongoing war and power shortages pose significant challenges, with economic growth projected at just 3.4% for 2024.

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Story summary

In a bold move to tackle soaring inflation, Ukraine's National Bank has increased its key interest rate from 13.5% to 14.5%. With inflation reaching 12% in December 2024, the bank is determined to stabilize the forex market and aims to lower inflation to 5% by 2026. However, the ongoing war and power shortages pose significant challenges, with economic growth projected at just 3.4% for 2024.