The monetary policy of the National Bank of Ukraine (NBU) does not stimulate socio-economic development of the country.
To such conclusion the Board of the NBU at the meeting of December 17, Biznestsentr reports with reference to Interfax-Ukraine.
“The current monetary policy was a delayed reaction to significant internal and external shocks, the impact of interest rate policy on real GDP growth remained limited, and high interest rates led to a significant outflow of financial resources in the public debt and increasing imbalances in the economy”, — stated in the decision.
The NBU Council believes that the Board of the national Bank pursuing a tight monetary policy in the current year, are unable to maintain steady economic growth and the resumption of lending to the economy.
In addition, the Council recommends that the Board of the regulator to improve the system of management of reserves and to update the studies of the impact of monetary policy, including strengthening of the hryvnia, and evaluation of the effect of the transfer (pass-through) changes in the exchange rate of the hryvnia in inflation and inflation expectations.
The Central Bank Board has recommended that the Board inform him of the plan of action aimed at improving the coordination of monetary and fiscal policy, and the details of the mechanism of stress-testing banks. The NBU Council also recommended that the analysis and improvement of predictive models, ensuring their transparency, taking into account the recommendations of the technical mission of the IMF.
As reported, in early December, the NBU Council acknowledged the activities of the management Board of the Central Bank in the formation and implementation of monetary and exchange rate policy in 2019 is ineffective and not meeting the challenges of modern development of Ukraine.
The Bank in turn said that the decision of the Council goes beyond its authority.