Ukraine's central bank said the situation in the war with Russia will determine whether its key interest rate can be cut from the current level of 25% or whether further hikes will be necessary, APA reports citing Reuters.
On June 2, the central bank sharply raised its main interest rate to 25% from 10%, tightening monetary policy for the first time since the Feb. 24 Russian invasion to tackle double-digit inflation and protect incomes and savings during the war.
"With a prolonged military confrontation, inflationary risks will increase significantly," it said in minutes of the central bank's Monetary Policy Committee (MPC) meeting which was held before the June 2 decision.
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