- Analysts are divided whether Ukraine"s central bank will raise its main interest rate for the fifth time this year or keep it at 8.5%, as inflation has eased slightly but remains in double digits, a Reuters poll of analysts showed on Tuesday. The National Bank of Ukraine (NBU) will hold its last scheduled monetary policy meeting of the year on Thursday. Seven out of 16 analysts expect the rate to be raised to 9.0%, one to 9.5%, while the other eight think it will remain unchanged. The central bank cut interest rates to an historic low of 6% last year as Ukraine"s economy tumbled into recession due to the coronavirus pandemic. But surging global energy prices and the government"s disbursement of social welfare payments to tide people through lockdowns has pushed inflation into double digits since July, more than twice the central bank"s target of around 5%. The central bank will also have to weigh the risks of a sharp military escalation between Ukraine and Russia. Investor jitters prompted the hryvnia to lose 3.3% against the dollar last month as foreign capital started leaving the country. Olena Bilan from brokerage Dragon Capital forecast the NBU would increase the rate to 9.0% because November inflation exceeded its expectations due to the currency devaluation. U.S. President Joe Biden and Russian President Vladimir Putin will speak in a high stakes video conference about Ukraine later on Tuesday. read more The central bank left the key rate at 8.5% at its previous meeting in October after four hikes this year, but said there was scope for a hike in December if needed. "The pro-inflationary risks, which the NBU spoke about in its communications, are being realised, which gives reasons for another rate hike," said Bilan. However, Oleksiy Blinov from Alfa-Bank Ukraine said inflation had started slowing thanks to cheaper food and government measures to limit utility prices. The median forecast from the poll showed annual inflation in November slowed to 10.5% from 10.9% in October and 11.0% in September. "We do not expect the rate hike this week. At the same time, the use of secondary instruments in order to strengthen monetary transmission cannot be ruled out," Blinov said. Editing by Matthias Williams and Mark Potter Our Standards: The Thomson Reuters Trust Principles.