This decision, combined with the maintenance of currency market stability, will help to keep inflation expectations under control, slow down inflation next year, and ultimately bring it back to the 5% target, noted the National Bank.
The statement indicated that inflation had been rising in recent months, but at a slightly faster pace than anticipated. At the same time, inflation expectations among economic agents remained relatively stable and manageable.
Price pressures are expected to persist in the coming months; however, inflation is projected to begin slowing down in the spring of 2025, according to the NBU. It is anticipated that inflation will reach 9.7% by the end of 2024 and will start to decline in the spring of 2025. The NBU's forecast includes a reduction in inflation to 6.9% by the end of 2025 and to 5% in 2026.