TITLE: Ukraine's National Bank Establishes Rate Cap for Three-Month Deposit Certificate Tenders
BODY:
On August 5, 2026, the National Bank of Ukraine (NBU) established a maximum interest rate for competitive bidding processes involving three-month limited deposit certificates. The NBU determined that the interest rate for operations placing three-month limited deposit certificates through interest rate tenders must not exceed the key policy rate plus 3.5 basis points. The actual rate will be determined based on the results of individual tenders.
Effective August 7, 2026, the NBU is transitioning its operational framework for three-month limited deposit certificates. Previously, the NBU satisfied all bank applications in full. Under the new mechanism, the NBU will conduct interest rate tenders with announced placement volumes once every two weeks. The first interest rate tender for three-month deposit certificates occurred on August 7, 2026. Announcements regarding tender volumes will be published on the NBU's official website the day before each tender, with results published following completion.
The changes were approved through two regulatory instruments: the NBU Board Decision No. 232-рш of August 5, 2026, establishing the rate for limited deposit certificate operations, and NBU Board Resolution No. 86 of August 5, 2026, amending the NBU Board Resolution No. 22 of February 24, 2022. Both documents took effect on August 6, 2026. These modifications form the first phase of the NBU's broader modernisation of its interest rate policy operational design, announced on July 30, 2026. The strategic objective is to activate the money market and develop reliable market-based pricing benchmarks, ultimately enhancing monetary transmission effectiveness and supporting the NBU's primary mandate of ensuring price stability.