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 in 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," reads the summary 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 remain efficient in influencing the interest rates in the interbank lending market.
As UNIAN reported, the NBU on September 7 increased its key policy rate to 18% per annum. It was a second growth in a row, after it was increased to 17.5% in July 2018.
The highest key policy rate fixed at 30% per annum was in effect from March 4 to August 28, 2015.
Inflation in Ukraine in July 2018 was 8.9% year-over-year, against 9.9% in June 2018 from June 2017.