This report reviews key macroeconomic data and microeconomic developments for Ukraine published during January 2015. With the currency hitting record lows every day for the past few weeks and foreign reserves standing at $6.4bn - merely enough to cover five weeks of imports - the central bank has in effect abandoned attempts to prop up the currency. The currency has fallen from 8.7 hryvnia to the dollar a year ago to 24.63 at the lowest point on February 5. The central bank raised its key interest rate to 19.5% as of February 6 from the current 14%, in a move aimed at curbing inflation and stablising financial markets. The central bank now forecasts that GDP will contract by 4%-5% in 2015, while inflation will hit 17.2%. The inflation will slow down thanks to tighter monetary policy coupled with other stabilisation measures undertaken by the NBU and the government in the framework of a new co-operation programme with the International Monetary Fund (IMF).