The NBU has lowered the policy rate and revised the inflation forecast: what does this mean for the economy?

On the 25th quarter, the Board of the National Bank of Ukraine decided to reduce the tax rate by 1 hundredth point, reducing it to 13.5%. At the same time, the rates for overnight and three-month deposit certificates changed, amounting to 13.5% and 16.5%.

The NBU press service informs about this. It is understood that this decision is based on a number of factors, including the weakening of price pressure, lowering the risks of international financial support, as well as the need to support lending and economic activity new

In the first quarter of 2024, persistent inflation in Ukraine increased at a rate lower than the NBU, reaching 3.2% of the river rate. It is predicted that inflation will remain unchanged, reaching 8.2%.

An important news was also the arrival of significant international financial assistance to Ukraine. In Bereznia, the country took 9 billion US dollars from various international partners, and in China it took another tranche to the European Union in the amount of 1.5 billion euros. This allows for significant external budgetary support in the future.

The NBU also emphasizes that the reduction of foreign exchange controls and a stable situation on the foreign exchange market make it possible to ensure the planned budget and support the controlled situation on the foreign exchange market.

Such a reduction in the tax rate, at the same time as avoiding high rates on bank deposits and OVDP, will ensure protection against inflation.

At the same time, due to the reduction in the regional interest rate, the rate for refinancing loans was reduced by 2 hundred points, having dropped to 17.5%.

The NBU also plans to continue with currency liberalization, ensuring a comfortable level of international reserves and a stable situation on the foreign exchange market. The base scenario for the NBU forecast is a reduction in the tax rate to 13% for the current economy, with the possibility of adapting monetary policy whenever the balance of risks changes.