“The central bank ensured a decrease in inflation pressure from excessive liquidity in the banking system, since it is known that excess money in the economy will eventually lead to an increase in the prices of consumer goods, according to KyivWeekly. Meanwhile, the NBU policies allowed for reducing an increase in demand,” NBU Governor Serhiy Arbuzov said last week.
Meanwhile, independent economists assure that the measures of the NBU had little effect and that inflation and price growth only slowed down due to seasonal factors. “It is impossible to control inflation in Ukraine using monetary factors. Given that 60% of the country’s economy operates in the shadows, reducing the circulation of hryvnia cannot curb inflation,” says President of the Ukrainian Analytical Center Oleksandr Okhrymenko told KW.
The austere resource diet that the National Bank of Ukraine imposed on commercial banks in August and early September may drag in for several months. Though the balance on correspondent accounts of banks grew to UAH 15-16 bn by the beginning of last week (from UAH 9.4 bn in September 8), the banks will not be able to live on this money for long as the NBU plans to continue limiting the availability of hryvnia on the currency market to prevent speculation and curb inflation.