The National Bank believes that the increase in the discount rate to 25% was the last one, this saved Ukraine from hyperinflation, and in the future the NBU will be able to return to easing monetary policy. This is stated in the published results of the discussion of the members of the Monetary Policy Committee (MPC), which preceded the decision by the NBU Board to raise the discount rate to 25%.

" The majority of the ILC members supported a decisive increase in the discount rate in June: seven - up to 25%, two - up to 24%,"

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To avoid such a scenario, especially in the conditions of a long war, it was necessary to switch to a policy of expensive money (high rates) in the economy.. So, for example, the Central Bank of Israel committed in the 90s.

" The rapid growth of imports in May, as well as a surge in demand for cash, indicated the severity of this threat.. Now the NBU has the ability to meet this demand through foreign exchange interventions,"

According to the NBU, the net sale of foreign currency in May to cover the growing currency deficit amounted to $3.4 billion.. , which significantly exceeded the March and April volumes ($1.8 billion. USA and $2.2 billion. USA respectively).

At the same time, most members of the ILC expect that the increase in the discount rate to 25% was the last in this cycle..

A decrease in demand in the foreign exchange market will reduce pressure on it, will protect Ukraine's international reserves and minimize the risks to exchange rate and price stability. And in the future, as the situation at the front and in the economy improves, the NBU will be able to return to easing monetary policy.

According to ILC experts, the psychological shock of the war is gradually replaced by the economic logic of decision-making by both business and the population..

Recall that, according to its own forecast, the NBU will be able to start reducing the discount rate not earlier than the end of the year, and move more actively towards its reduction already in 2023..