Central Banks
Ukraine Delivers Four-Point Cut as Economy Returns to Growth
- Economic forecast raised to 4.9% this year after steep drop
- Inflation to slide well into single digits, lifting burden
This article is for subscribers only.
Ukraine’s central bank delivered its biggest interest-rate cut since Russia’s invasion and raised its forecast for growth this year as sliding inflation eased pressure on the war-battered economy.
The National Bank of Ukraine cut the benchmark rate by four percentage points to 16% on Thursday, deeper than the 18% forecast in a Bloomberg survey. Rates on deposit certificates remained steady. After collapsing almost 30% last year following Russia’s attack, Ukraine’s gross domestic product will climb 4.9% in 2023, up from a forecast of 2.9%, the bank said.