KYIV, Dec 13 – The National Bank of Ukraine (NBU) announced on Thursday an increase in its key policy rate to 13.5% from 13%, citing an inflation rise to 11.2% in November. This move surprised the market, where most participants had expected the rate to remain unchanged at 13%.

"The Board of the National Bank of Ukraine has decided to raise the key policy rate to 13.5% per annum. This decision is intended to preserve the sustainability of the FX market, keep inflation expectations in check, and gradually bring inflation down to the target of 5%," stated the regulator in a press release on its official website.