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 has written on Facebook.
Shevchenko reminded that on August 18, 2015, the National Bank introduced a monetary policy of inflation targeting, which aimed 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 Ukraine’s international reserves reached an eight-year high – more than $29 billion. (Ukrinform/Business World Magazine)
