The National Bank of Ukraine has increased its key interest rate to 14.5%, impacting loans, deposits, and savings across the country.
In response to this rate hike, commercial banks are expected to adjust their deposit interest rates. Dmitry Zamotaev, Director of Retail Business at Globus Bank, noted that banks are unlikely to lower deposit yields, as this would diminish their appeal to customers.
Forecasts indicate that deposit rates in February will be set at competitive levels. Additionally, inflation is projected to decrease to 7% in the second half of 2025, suggesting that one-year deposits could yield a real return of up to 4%.
However, should inflation decline, the National Bank may consider lowering the key rate, which would subsequently reduce deposit profitability. This scenario underscores the advantage of securing long-term deposits now.
Traditionally, an increase in the key rate leads to higher loan rates. Borrowing costs for individuals and businesses may rise as banks adjust their rates to cover increased expenses.
Furthermore, there are concerns for pensioners and internally displaced persons (IDPs), who may face payment losses, with a deadline approaching on March 31.
Previously, Monobank warned clients about potential significant financial losses, highlighting risks that could result in loss of funds.