Ukraine keeps key rate unchanged at 25% as war rages on

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KYIV — Ukraine’s central bank kept its main interest rate unchanged at 25% on Thursday, saying that inflationary pressure remained high and that an extended full-scale war with Russia was the key economic risk.

In a statement, the central bank said inflation had been slightly slower than its earlier forecast and that inflation would remain under control.

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It said the central bank was ready to hike the rate if required and to deploy other measures to protect its international reserves and maintain control over inflation.

“Inflationary pressure remains high,” it said.

“Effects of the war, in particular the destruction of production facilities and disruption of logistics, still have a major impact on prices of almost all goods and services in the consumer basket,” it said. (Reporting by Max Hunder and Pavel Polityuk; writing by Tom Balmforth; Editing by Jon Boyle)

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