Ukraine central bank maintained its benchmark interest rate at 25%, as expected, for the seventh consecutive meeting since imposing an emergency rate hike following Russia’s 2022 invasion. The bank raised its 2023 economic growth forecast to 2%, up from 0.3%, and lowered its year-end inflation estimate to 14.8%, down from 18.7%. The new forecasts may result in a rate-cutting cycle beginning in Q4 2023, sooner than the previously intended Q2 2024. Despite increasing optimism among business leaders, policymakers remain cautious to avoid undercutting the hryvnia and widening the current account deficit.