andriy pyshnyy : national bank of ukraine press briefing - monetary policy decisions speech by mr andriy pyshnyy, governor of the national bank of ukraine, at a press briefing on monetary policy decisions, kyiv, 31 october 2024. * * * dear colleagues, the board of the national bank of ukraine has decided to keep its key policy rate at 13 %. coupled with maintaining the sustainability of the fx market, this decision will allow keeping inflation expectations under control, slow down inflation next year, and bring it back to the 5 % target going forward. as expected, inflation has increased in recent months. however, the pace of the increase was somewhat faster than forecast in september, inflation accelerated to 8. 6 % yoy, and continued to rise in october, according to the nbu's estimates. the increase in the price pressure in h2 2024 was expected, being reflected in the nbu's previous forecasts. at the same time, the growth in both consumer and core inflation was faster than forecast. an important contribution to these dynamics came from an increase in food prices on the back of smaller - than - expected harvests of various crops, and from the related growth in the cost of food industry inputs. the rise in inflation was also driven by further increases in production costs, including the costs of electricity and labor, as well as by exchange rate effects from the weakening of the hryvnia in previous periods. despite the acceleration of inflation in recent months, economic agents'inflationary expectations remained sufficiently stable and controllable, albeit worsening marginally. the pressure on prices will persist in the coming months, but inflation will start to slow in spring 2025 in the coming months, the pressure on prices will persist due to the further impact of food supply factors, increases in budget expenditures, rapid wage growth, and wider energy shortages during the heating season. as a result, inflation will hit 9. 7 % at the end of 2024. that said, inflation will start to decline in spring 2025. the slower price growth next year will be driven by the nbu's prudent monetary policy and weaker external price pressures, as well as by an improvement in the energy sector and an increase in harvests. the nbu forecasts inflation to decline to 6. 9 % at the end of 2025 and return to the 5 % target in 2026. the economy continues to grow, although the growth remains

adaptability of the fx market and the economy. exchange rate movements will be in line with the nbu's objectives of keeping inflation expectations under control, slowing inflation next year, and returning it to its 5 % target on the policy horizon. if pro - inflationary risks continue to materialize, the nbu stands ready to deploy all available monetary policy tools 3 / 4 bis - central bankers'speeches the revised nbu forecast envisages keeping the key policy rate at 13 % for a longer period – at least until the summer of 2025. in the event that price pressures continue to rise above the forecast and threaten to unanchor inflation expectations, the nbu will be ready to tighten its interest rate policy and take additional monetary measures. thank you for your attention! 4 / 4 bis - central bankers'speeches