2023-07-27 16:50:51
Ukraine’s central bank cut its interest rate for the first time since the Russian invasion in February 2022. The interest rate will be cut from 25% to 22% on Friday, authorities said Thursday, adding that this decrease is due to the significant control of inflation and the robust situation on the currency market.
The inflation rate, at 26% at the start of the year, rose to 12.8% in June and the inflation forecast for the whole year fell from 14.8% to 10.6 %.
The outlook for economic developments has increased from 2% to 2.9%. However, last year economic output fell by more than 29% due to the Russian invasion and the ensuing conflict.
The main risk for the economy at present remains the war. Likely Russian attacks on energy infrastructure or in ports as well as reduced or more irregular financial aid might hamper economic development.
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