FX.co ★ Ukraine Holds Key Rate Steady for 2nd Meeting

The National Bank of Ukraine has maintained its key policy rate at 15.5% during its June 2025 session, continuing its pause for the second meeting in a row. This decision is aimed at bolstering the stability of the foreign exchange market, anchoring expectations, and gradually steering inflation back to the 5% target over the policy horizon. Policymakers believe that this approach will contribute to the sustainability of the FX market and manage inflation expectations effectively, facilitating a steady decline in inflation. Ukraine experienced an increase in its annual inflation rate to 15.1% in April, up from 14.6% in March, marking an eleventh consecutive month of rising inflation and reaching a peak not seen since May 2023. The central bank anticipates that inflation continued to rise in May, but predicts a deceleration over the summer, supported by the new harvest and improved conditions in the energy sector when compared to the previous year.