19.03.202612:20:55UTC+00Ukraine Holds Interest Rate at 15%

The National Bank of Ukraine kept its key policy rate unchanged at 15% at its March 2026 meeting, following a 50 bps cut in its first decision of the year. This pause ran counter to earlier expectations that the central bank would prioritize supporting economic growth and the labor market by further easing monetary policy.

The shift in stance was driven largely by the outbreak of war in the Middle East and the resulting risks to global energy supplies, which pushed up key energy prices and heightened inflationary pressures in Ukraine. At the same time, rising geopolitical tensions boosted global demand for the US dollar and weighed on the hryvnia, further constraining the scope for additional reductions in borrowing costs.

After a prolonged period of decline, inflation in Ukraine rose to 7.6% in February. The central bank indicated that it will not resume cutting rates until there is clear evidence that higher energy prices are not feeding into de-anchored inflation expectations.