Key Policy Rate (NBU) in Ukraine

The key policy rate (oblikova stavka) is the reference rate set by the National Bank of Ukraine (NBU). It is Ukraine's main monetary policy instrument.

It is decided by the NBU's Monetary Policy Committee at its meetings (around eight a year), in line with its inflation target and the economic situation. The new rate takes effect the business day after the decision and is quoted as an annual percentage.

A hike raises borrowing costs to curb inflation and tends to support the hryvnia (UAH); a cut cheapens credit to stimulate the economy. In wartime the rate also aims to protect local-currency savings and exchange-rate stability.

It only moves on decision dates (a step function). In wartime the NBU also runs capital controls and manages the exchange-rate regime, which interact with the policy rate and blunt its usual pass-through.