(Bloomberg) -- Ukraine’s central bank delivered a third straight cut to borrowing costs as policymakers weigh the economic impact of Russian attacks on the nation’s energy sector.

The National Bank of Ukraine lowered its key interest rate by 50 basis points to 13% on Thursday. The decision is in line with the median estimate of economists in a Bloomberg survey. 

A slowdown in inflation and prospects for foreign aid inflows enabled rate setters to resume monetary easing in March. They expect allies to step up financial support in the coming weeks, including $2.2 billion in funding from the International Monetary Fund and €1.9 billion ($2.1 billion) from the European Union this month.

Ukrainian officials have reduced a growth outlook to 3% from 3.6% due to Russian attacks on energy facilities. 

“The course of the full-scale war continues to be the key risk to inflation dynamics and economic development,” the central bank said in a statement on Thursday. It cited “further damage to infrastructure, especially energy and port” facilities. 

Prime Minister Denys Shmyhal said this month that attacks had slashed total power production capacity by 9 gigawatts, calling the situation “very difficult.” 

Seven of 11 policymakers saw the benchmark rate being cut to 13% by the end of this year, while four anticipated deeper reductions, according to the central bank’s minutes from April.

Officials considered not only the energy risks but also forecasts of accelerated inflation in the second half. Last month annual price growth edged up for the first time since the end of 2022 to 3.3%, compared with a predicted 8.2% for 2024.

“Such a pace of consumer price growth was lower than the central bank expected,” it said in the statement.

Policymakers may revise their target for a year-end level from 13% currently, they said on Thursday. 

--With assistance from Patrick Donahue.

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