Ukraine’s central bank, NBU, anticipates a reduction in the key policy rate to 18% by year-end to aid economic recovery. In September, nine members of the NBU MPC supported cutting the rate by 200 bps to 20%, with the NBU chairman attributing the rate reduction to the continued deceleration of inflation, which slowed to 8.6% YoY in August, below NBU predictions. While the bank expects this downward trend to persist, it acknowledged that the potential for rapid inflation reduction has nearly reached its limits.