Ukraine’s central bank held its key rate steady at 15%, citing inflation close to its 5% target and expectations of moderate increases before a later acceleration. The bank anticipates sustained growth, primarily driven by increased budget spending, particularly in the military sector. However, it acknowledged the likelihood of a more prolonged war than initially anticipated, adding uncertainty to their outlook. The bank remains reliant on external support, which, if resumed, could enable a slight policy rate reduction in the second half of the year.