The National Bank of Ukraine reported that it kept the discount rate at 25%.

 "The board of the National Bank of Ukraine decided to keep the discount rate at 25% per annum, as well as to continue increasing the standards for the formation of mandatory reserves by banks. This will contribute to the further increase in the attractiveness of hryvnia assets, the maintenance of exchange rate stability and the gradual reduction of inflation," the regulator notes.

 The National Bank additionally increased the requirements for banks' mandatory reserves.

 From February 11 to 5 p.p. the standards for the formation of mandatory reserves by banks for demand funds and funds in the current accounts of legal entities and individuals, as well as for deposits and funds in the current accounts of other non-resident banks and loans received from international (except financial) and other organizations are increased. In particular, from 5% to 10% in national currency and from 15% to 20% in foreign currency.

 Additionally, from March 11, the salary will be increased by 10 percentage points. norms for the formation of mandatory reserves by banks for demand funds and funds in the current accounts of individuals in both national and foreign currencies. However, this part of the reserves will not be covered by the benchmark OVDP coverage mechanism.

 "The updated forecast envisages maintaining the discount rate at the level of 25% at least until the end of the first quarter of 2024. The National Bank is ready, if necessary, to apply further measures to avoid emission financing of the budget deficit, increase the attractiveness of hryvnia assets, strengthen the stability of the foreign exchange market, and create appropriate prerequisites for administrative restrictions," the message reads.

 At the same time, the NBU indicates that inflation has stabilized in recent months, although it remains at a high level.

 And that inflation will gradually decrease and remain manageable "thanks to the measures of the National Bank and the government, as well as the support of international partners."

 "The National Bank predicts a slowdown in inflation to 18.7% in 2023," the National Bank reported.

 The NBU also noted that "the recovery of the economy was interrupted as a result of Russian terrorist attacks against the energy infrastructure." "As security risks decrease, Ukraine will return to sustainable economic growth in 2024-2025," the regulator noted.

 The discount rate determines the interest rate at which banks can receive funds (refinancing) from the central bank, and affects the interest rate at which banks give loans.