Ukraine raises key rate to 25% in first hike since Russian invasion

Ukraine sharply hiked its main interest rate to 25% from 10% on Thursday, tightening monetary policy for the first time since the Russian invasion to tackle double digit inflation and protect incomes and savings during the war.

The invasion has devastated the Ukrainian economy, which could shrink by at least a third this year as the war forced 40% of businesses to close, destroyed infrastructure, blocked shipping routes and reduced towns to rubble.

The National Bank of Ukraine (NBU) had frozen the rate 10% at the start of the invasion but last week signalled it could start revising the rate, as business