Interest rates raised, foreign business invited to return

The main interest rate was raised from 10 % to 25 % by the National Bank of Ukraine. So far the interest rate had remained unchanged at 10 % since January.

The NBU explained that they decided to keep the rate at 10 % for the duration due to the risks involved in raising it while the economy is re-arranging itself to reflect the martial conditions. Now, though, the decision was made to raise the rate partly to incentivize citizens to hold hryvnia assets and to avoid the dollarization of the economy. The move should also remove some pressure from the hryvnia exchange market and help the NBU to combat inflation.

Earlier in April, the NBU reported 16,4 % year-on-year inflation which is expected to get worse.

Meantime, Ukraine´s prime minister Denys Smyhal invited foreign businesses to resume their operations in Ukraine. He noted that most Ukrainian enterprises have already done so in the safe regions.

Over 600 companies have taken part in the government´s business relocation program and have relocated themselves out of the areas of active hostilities. Almost 400 of those have already resumed their operations.

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