Bank of Ukraine increased interest rates

Ukraine's central bank increased its benchmark interest rate on Monday night, for the first time in the last eight months, in an attempt to support the country's currency, the hryvnia, and limit inflation in the context of the worsening of the political crisis.

The interest rate at which banks lend has been increased from 6.5% to 9.5% and the overnight financing from 7.5% to 14.5%, the decisions were not anticipated by the analysts, writes the Financial Times.

Secessionist actions in eastern Ukraine have intensified on Monday after the pro-Russian separatists took control of the government buildings in several cities, ignoring a surrender deadline transmitted by the authorities in Kiev.

"The central bank deems it necessary to take this step to increase the value of the national currency, to limit inflation and to stabilize the situation in the money market," the bank noted in a statement.