The NBU key policy rate (discount rate) is the rate on the National Bank’s operations with banks; changes in it affect the cost of short-term borrowing in the economy.
In plain words
Raising the rate usually makes loans more expensive, makes deposits and government bonds more attractive and restrains inflation; cutting it works the other way. Banks do not react instantly or all in the same way. The decision is taken by the NBU Board on a published schedule of meetings. The NBU notes that since the full-scale invasion the key rate has become not the main but still an important monetary policy instrument, working together with the other instruments.
Sources
- National Bank of Ukraine: monetary policy instruments — “Monetary policy instruments” page. Checked 14.10.2026.
- National Bank of Ukraine: monetary policy and the key policy rate — “Key policy rate” section, news of 17 September 2026. Checked 14.10.2026.
Example. On 17 September 2026 the NBU raised the key policy rate to 16%. After such decisions banks usually revise deposit and loan rates, but not at once and not by the same amount.