The National Bank of Ukraine lowered its benchmark interest rate for the second straight month by 50 bps to 16.5 percent on September 5th 2019, in line with market expectations. Policymakers said the cut is in line with reaching the 5 percent inflation target and reiterated that monetary policy easing will continue if risks to price stability continue to fall. Annual inflation rate rose to 9.1 percent in August, slightly higher than previously estimated by the central bank. Interest Rate in Ukraine averaged 38.57 percent from 1992 until 2019, reaching an all time high of 300 percent in October of 1994 and a record low of 6.50 percent in August of 2013.
Interest Rate in Ukraine is expected to be 16.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Ukraine to stand at 13.50 in 12 months time. In the long-term, the Ukraine Interest Rate is projected to trend around 8.00 percent in 2020, according to our econometric models.