NBU plans to reduce inflation in 2018

The National Bank of Ukraine (NBU) plans to reduce and stabilize inflation at 5% in the medium term, including to an unambiguous level, this year.

"We are confidently moving toward the goal – to reduce and stabilize inflation at 5% in the medium term. While we completed 2015 with the inflation over 40%, now it is at 13%. This year it will drop to an unambiguous level, in the middle of the next year it will enter the target range, and in 2020 it will drop to 5%," NBU Governor Yakiv Smolii said, opening an annual research conference jointly with the National Bank of Poland.

Smolii stressed the National Bank and Government share a common vision regarding the dominance of monetary policy over fiscal one to gradually reduce inflation.

He recalled that until 2015, monetary policy in Ukraine was subordinated to Government's goals, while the central bank was forced to adhere to a soft policy to ensure national needs.

Read alsoLarge and medium enterprises in Ukraine post over US$5 bln in pre-tax profit in Q1"In 2014 alone, when our country suffered from the outbreak of a military conflict in the east and stratification of economic, currency and banking crises, the National Bank financed almost 40% of the country's consolidated budget," the NBU head said.

Smolii stressed such practice was unacceptable and hindered the regulator's efforts to reach targets on ensuring price and financial stability.

As UNIAN reported earlier, the Board of the National Bank of Ukraine decided to maintain its key policy rate at 17.0%.