According to the National Bank of Ukraine (NBU), the board on 29 October raised the key policy rate by 0.5 percentage points to 16.5% per annum.
Purpose of the decision and the regulator’s wording
The decision aims to preserve the attractiveness of savings in hryvnia, support the resilience of the foreign-exchange market and gradually return inflation to the 5% target.
“Raising the key policy rate in October will strengthen the transmission of previous decisions, which will support the attractiveness of hryvnia assets. The current decision will also help to limit pressure on the foreign-exchange market, which has intensified due to a reduction in exports and worsening expectations against the backdrop of intensified Russian attacks on business and the civilian population,” the regulator said.
Banks’ reaction and the dynamics of deposit rates
Earlier decisions to tighten interest-rate policy have already supported the appeal of hryvnia assets: small banks were the first to react to the change in the key policy rate, and over the past month rates on hryvnia deposits have begun to be revised by larger institutions with a significant market share.
The NBU’s rate increase on 30 July has already affected the cost of hryvnia savings, and some banks raised deposit rates following the tightening of interest-rate policy.
Deposit volumes and components of the real value of money
As of 1 October 2026, the total amount of individuals’ deposits in banks in Ukraine stood at 1,779.6 billion UAH, which is 19.4 billion UAH higher than the previous month and almost 162 billion UAH higher than on 1 January.
In addition to the nominal rate, the real value of money is also shaped by fees, insurance and the terms for early withdrawal or premature redemption of deposits, which affect the depositor’s final return.
