Slowing inflation and more certainty about international financial aid this year led Ukraine’s central bank to drop its key interest rate to 15% from 15.5% on Thursday.

The central bank forecasts consumer price inflation to fall in January after falling to 8% in December.

Governor Andriy Pyshnyi said the central bank started interest rate policy easing due to falling inflation and lower external financing concerns.

Most of 2025 saw a constant interest rate.
“This decision will facilitate the economy’s ongoing adaptation to wartime challenges – specifically by supporting lending, which has grown at a rate of over 30% year-on-year in recent years,” Pyshnyi said at a media event.

The central bank stated inflation forecasts remained high owing to energy sector destruction after escalated Russian bombardments of Ukraine’s power infrastructure.

The central bank expects inflation to drop to 7.5% this year.
The energy imbalance will slow Ukraine’s economic development in 2026, central bank officials stated. “The difficult situation in the energy sector will continue to restrain business activity for a long time,” Pyshnyi said, predicting a 1.8% increase in nominal GDP this year.

Higher energy equipment and gasoline imports drove hard currency demand, officials added.

The central bank pledged to ensure foreign exchange market stability. The central bank anticipates its reserves to reach $65 billion by the end of the year from a record $57.3 billion.

Ukraine will receive 90 billion euros ($105.46 billion) from the EU this year and next. Ukraine and the IMF are also discussing a $8.1 billion credit deal.