The National Bank of Ukraine has raised its key policy rate by 0.5 percentage points as inflation accelerates and economic activity weakens under Russian attacks.
Ukraine’s central bank, the National Bank of Ukraine, raised its key policy rate to 16.5% on 29 October 2026, citing stronger price pressures and worsening inflation expectations.
The key policy rate is applied to calculate interest and penalties on late tax payments.
Headline inflation accelerated to 10.0% year on year in September, driven by higher fuel prices and Russian attacks on logistics infrastructure. The bank raised its 2026 inflation forecast to 12.5% and expects the 5% target to be reached in 2028.
Real GDP contracted by 0.5% year on year in the third quarter, and the 2026 forecast was cut to -0.4%. Growth is projected at 0.4% in 2027 and 2.2% in 2028.
The bank expects to keep the rate unchanged until the second quarter of 2027. Its next monetary policy meeting will be held on 17 December 2026.
The increase takes effect on 30 October 2026.
Earlier, Ukraine’s National Bank raised the key policy rate from 15.5% to 16.0% per annum from 18 September 2026.
