Ukraine’s monetary policy committee cut rates by 250 basis points on January 30, saying inflation had fallen within its target range much earlier than expected.

The National Bank of Ukraine’s rate-setting body lowered the benchmark rate to 11%, its sharpest cut since 2016. Year-on-year inflation has fallen for five consecutive months in Ukraine, reaching 4.1% in December from 9.1% in July.  

The NBU issued an optimistic assessment of Ukraine’s macroeconomic prospects. But it warned that these