Shevchenko: NBU’s focus on low and stable inflation is more effective

Shevchenko: NBU’s focus on low and stable inflation is more effective

The use of an inflation targeting policy over the past six years has proved that the focus of the National Bank of Ukraine (NBU) on low and stable inflation is more effective, rather than the focus on a fixed exchange rate.

NBU Governor Kyrylo Shevchenko wrote about this on Facebook, Ukrinform reports.

Shevchenko reminded that on August 18, 2015, the National Bank introduced a monetary policy of inflation targeting, which aims to achieve and maintain price stability.

"These six years have proved that the NBU's focus on low and stable inflation, rather than on a fixed exchange rate, is more effective," the NBU governor wrote.

According to him, comparing inflation fluctuations before and after the introduction of inflation targeting, the "progress is obvious": loans have become cheaper and the number of issued loans are growing.

Shevchenko also reminded that on January 1, 2021, Ukraine’s international reserves reached an eight-year high - more than USD 29 billion.

As Ukrinform reported, the NBU projected that inflation would slightly exceed 10% in the near future, but then slow down at the end of 2021 and return to the target of 5% in the second half of 2022.


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