Ukrainian banks significantly reduce rates on loans, deposits

First Deputy Governor of the National Bank of Ukraine (NBU) Kateryna Rozhkova says Ukrainian banks have significantly reduced rates on loans and deposits following a decrease in the regulator's key policy rate.

"All groups of banks responded to monetary policy easing by lowering loan rates. Foreign banks cut the rates the most, to 12.7% per annum on average. Rates decreased in other bank groups, but, unfortunately, not so significantly: to 19%-19.9% per annum. We will be working further in this regard," she wrote on Facebook.

Interest rates on deposits are reducing as well.

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"That is 13% per annum on average within the [banking] system today. PrivatBank completely reduced it to 11.5%. Analysts and journalists will be interested in the fact that the reduction in rates in December-February was the most significant within the past three years," Rozhkova added.

As UNIAN reported earlier, on January 31, the National Bank cut the key rate by 2.5 percentage points to a three-year low of 11% per annum.

The regulator reduced the rate for the fifth time in a row, after lowering it in December, October, September, and July 2019.