Today, the National Bank of Ukraine discussed a blueprint for the Monetary policy strategy for years 2016-2020 with 26 leading economic experts. The meeting with Dmytro Sologub, Deputy Governor of the National Bank of Ukraine, and Volodymyr Lepushynskyi, Head of the Monetary Policy Office, Monetary Policy and Economic Analysis Department, was attended by representatives from the Centre for Economic Strategy, the ICPS (International Centre for Policy Studies), the Institute for Economic Research and Policy Consulting (IER), CASE Ukraine, GFK Ukraine, investment companies, commercial banks and others. Besides, among the participants in the discussion were researchers from the Kyiv School of Economics, the National University of “Kyiv-Mohyla Academy” and representatives from the International Monetary Fund and the Ministry of Finance of Ukraine.
“For the first time, we have set a clear timeframe for the adoption of an inflation targeting regime in this blueprint, said Dmytro Sologub. - We plan to complete the transition to an IT regime by the end of 2016". He also announced the medium-term quantitative inflation objectives: 12% +/-3% for 2016 and 5% +/-1% for 2019.
Overall, the draft Strategy and the efforts involved in its development were commended by experts. In particular, Mr. Jerome Vacher, IMF Resident Representative in Ukraine, said the creation of this strategic document represents a significant step in the right direction as it outlines the key components of the monetary policy framework of the NBU, under which the National Bank commits itself to sticking to the disinflation course as its policy priority. In its turn, the IMF stands ready to assist the National Bank with the Strategy for implementing monetary policy, which should be consistent, coherent, and credible.
Among the issues capturing the attention of the participants in the discussion were the appropriateness of the adoption of an inflation targeting regime and the compatibility of price stability objective with the need to boost the economy and build up the international reserves. The experts expect the National Bank to devise a roadmap for the transition to an inflation targeting regime in the period ahead. In response to this, Dmytro Sologub assured that efforts are under way to develop this roadmap. Its details, as well as the Monetary policy communication strategy and other decisions taken by the regulator will be discussed at regular meetings with experts.