The National Bank of Ukraine (NBU) has raised the discount rate from 15.5% to 16% per annum. The regulator explained the decision by persistent fundamental inflationary pressure and the need to contain inflation expectations.
This is stated on the NBU website.
The National Bank notes that in August 2026, consumer inflation accelerated to 8.1% y/y, slightly exceeding the trajectory of the NBUʼs July forecast. Prices rose faster primarily due to higher fuel prices amid the escalation of the war in the Middle East. Certain tariffs also rose faster, in particular due to the consequences of Russian attacks on critical infrastructure.
Core inflation has remained high in recent months. Rising business costs for electricity, logistics, and wages have weighed on prices. Inflation expectations have also remained high.
The rate increase should support the attractiveness of hryvnia savings and the stability of the foreign exchange market. NBU emphasizes that it will continue to monitor inflation and is ready to tighten interest rate policy if necessary.
What is the discount rate
The discount rate is one of the main indicators of the economy. It is the percentage at which NBU lends funds to banks and, accordingly, below which it is unprofitable for commercial banks to lend to customers. Thanks to the discount rate, NBU influences inflation (price growth).
Lowering the rate makes loans more affordable (because the interest on them becomes lower), due to which banks begin to issue more money, there is more of it in the economy, and when there is more money, inflation gains momentum. In this case, there is less money on deposits, and more on hand — accordingly, people spend more.
But higher inflation actually leads to a depreciation of the hryvnia, because with rising prices, you can buy fewer goods for the same amount.
And all this also works the other way around — when the rate rises, loans and deposits become more expensive, which encourages people to save more. As a result, there is less money in the economy and inflation slows down.
- At the beginning of the war, the National Bank decided not to change the discount rate, leaving it at 10%, but on June 2, 2022, NBU sharply increased the rate to 25%, which was one of the sharpest increases in history. Subsequently, NBU lowered the discount rate several times, until in June 2024 it was 13%, in December — 13.5%, in January 2025 — 14.5%, and in March — 15.5%.
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