Around half of European countries, over 20, now have 0% interest rates and a few are already in negative territory. Ukraine, which has the highest benchmark interest rate on the continent, has just reduced it again, for the fifth time this year. The race between central banks to cut rates, when there is inflation, has made it costly to keep fiat money in a bank account or under the mattress.
Also read: European Banks Struggle With Low Interest Rates and Strict Regulations
Ukraine Slashes Interest Rate by 2 Percentage Points
There are over 40 countries in Europe but only half of them nowadays have their interest rates above 0%, and just a few come close to Ukraine’s high rates. But the Eastern European nation, which has also been facing high inflation amid political turmoil, economic crisis and an unresolved military conflict, has reduced its benchmark rate five times this year.
This past Thursday, the National Bank of Ukraine (NBU) slashed its key interest rate again, from 15.5% to 13.5%, which is its lowest level in two years….