Keeping the key policy rate at the level of 25% by the National Bank of Ukraine (NBU) was supported by ten out of ten members of the monetary policy committee at a meeting on October 19, the NBU website reported on Monday.

"Taking into account the balance of risks, for the third time in a row the members of the committee unanimously spoke in favor of maintaining the rate at the level of 25%. The participants in the discussion noted that such a decision takes into account both the proximity of actual inflation to the forecast indicators and market expectations for the rate, as well as the still shifted upward balance of inflationary risks," the release notes.

According to the report, the participants noted that inflation in recent months was slightly lower than expected, and economic activity was slightly higher.

They indicated that maintaining a high level of the refinancing rate is necessary for the further growth of the attractiveness of hryvnia assets and the weakening of pressure on the foreign exchange market.

The members of the committee agreed that this would give an opportunity to further maintain the controllability of inflationary expectations and processes and ensure a slowdown in inflation already next year.

Several participants noted that inflationary pressure is already showing the first signs of stabilization, in particular, this is evidenced by the slowdown in inflation expectations of the majority of respondents.

At the same time, it is necessary to perceive these signals with caution, since the transition of the war to a protracted stage, the volatility of exchange rates and expected inflation, and inflationary pressure increase the risk of further development of the inflationary spiral.