Ukraine’s central bank raised its key policy rate 50bps to 16.5% on Thursday,
citing intensified Russian air strikes and sustained attacks on businesses and
infrastructure. The bank said logistics disruptions and a surge in fuel costs
have materially increased price pressures, raising its inflation forecast for
this year to 12.5% from 10% and trimming its GDP outlook to a 0.4% contraction
from a prior 1.8% expansion.
