On 31 January 2017, the Council of the National Bank of Ukraine held a meeting at which a procedure for developing the Monetary Policy Guidelines and Overseeing its Implementation was approved. The meeting also addressed a number of other issues and approved some regulatory documents governing the activities of the internal audit of the NBU.
In opening the meeting, Chairman of the NBU Council Mr Bohdan Danylyshyn said: “Today we embark on an important phase in the NBU’s performance of its statutory function of developing the Monetary Policy Guidelines. This represents the first step requiring the NBU Council members and the public to define a monetary regime to which the NBU will be committed in 2018 and analyze the implementation of the inflation targeting framework in 2016-2017. The Monetary Policy Guidelines is meant to become a document reflecting the NBU Monetary policy strategy. This document should set a priority target, define objectives, describe the peculiarities of communication and monetary policy implementation in the medium-term (3-5 years), set out the principles governing the application of instruments and mechanisms, etc. Defining a procedure for monitoring monetary policy implementation is equally important as it is one of the statutory functions of the NBU Council. Such control should be exercised through assessing the compliance of the NBU Board and monetary sector developments in the reporting period with the monetary policy targets and objectives set out in the Monetary Policy Guidelines.
During the meeting, the NBU Council members Mr Mylovanov and Mr Koziuk presented reports providing insight into the implementation of an inflation targeting framework in Ukraine and other countries.
In addition, the NBU Council members called for the need to enhance coordination between the public authorities during the implementation of financial and economic policy.