In view of the expected price movements, persistently high inflation expectations and the upward shift of the balance of risks, the NBU Board decided to keep the key policy rate at 25%. The central bank has also increased the required reserve ratios for hryvnia and FX current accounts by 5 pp in order to strengthen monetary transmission.
What is more, the NBU will allow the banks to use benchmark domestic government debt securities to meet up to 50% of their total required reserve ratios, with a view to decreasing the risk of the NBU having to return to the monetary financing of the budget deficit in 2023.