The National Bank of Ukraine (NBU) is mulling over change in its monetary policy, admitting a possible lack of liquidity in the banking sector in 2019.
“Besides the current decision on the key policy rate, the NBU Monetary Policy Committee (MPC) members also discussed potential needs in further modification of the operational design of the monetary policy. Since mid-summer 2018 liquidity surplus decrease has been registered in the banking system and, consequently, growth in hryvnia resources on the interbank lending market. The NBU expects that this trend will continue unchecked until the end of the current year, so that next year the banking system could even witness a liquidity deficit,” read the minutes of the September 5 discussion on the key policy rate at the NBU Monetary Policy Committee, posted on September 17.
In view of the possible changes in the structural position of the banking system, the MPC members considered potential changes to the monetary policy’s operational design so that the NBU’s rate policy remained efficient in influencing the interest rates on the interbank lending market. (UNIAN/Business World Magazine)
