Kathmandu. Bank interest rates in Ukraine have doubled. Ukraine's central bank, the National Bank of Ukraine, has more than doubled interest rates to 25 percent. This interest rate is the highest in Europe. Ukraine's central bank has raised interest rates to stem rising inflation since the Russian invasion and to stem the tide. Since the start of the war in Ukraine, businesses have been shut down and the supply chain has been disrupted.

The World Bank has projected Ukraine's economy to shrink by 45 percent this year. Inflation in Ukraine has reached 17 percent. Ukraine's central bank estimates that inflation will reach 20 percent this year. Ukraine's central bank has said that raising the benchmark interest rate from 10 percent to 25 percent will help save people's savings from rising inflation. In addition, the move will ease the pressure on the economy and keep the currency stable, the bank said.

Ukraine's currency, the hryvnia, has come under heavy pressure since the Russian invasion, and prices have plummeted. Ukraine has raised interest rates for the first time since the war began. At the same time, the bank has indicated that it will reduce interest rates again once inflation comes under control.