The Board of the National Bank of Ukraine (NBU) has submitted to the NBU Council its proposals for basic principles of monetary policy for 2017 and the medium term, which the Council plans to consider at its meeting on December 21, the NBU`s press service told UNIAN.
As noted in the draft, the medium-term inflation target is set at 5%, including on the results of 2017 the inflation will fall to 8%, in 2018 to 6%, in 2019 and thereafter to 5%.
At the same time, the NBU`s monetary policy will also focus on the fulfillment of such objectives as accumulation and support of an adequate level of international reserves, as well as the fulfillment of other criteria of the program of cooperation with the International Monetary Fund.
The National Bank plans to achieve the goals for inflation primarily by changing the key interest rate of monetary policy, the role of which will play the discount rate.
Among the basic principles of monetary policy for 2017 and the medium term, the regulator considers an unconditional priority of achievement and support of price stability, floating exchange rate regime, forward-looking decision-making, transparency and institutional, financial and operational independence of the National Bank.
It is also reported that the National Bank intends to involve a wide range of experts, banking, media and business community, as well as the public to discuss the Basic Principles.
As UNIAN reported earlier, the National Bank of Ukraine decided to reduce the discount rate by 1 percentage point, or down to 14% per annum from October 28.
The maximum discount rate at 30% per annum was in force from March 4 to August 28, 2015.
Inflation in October 2016 accelerated from 7.9% recorded the previous month to 12.4% y-o-y, surpassing the target of the National Bank of Ukraine of 12% set for year-end.
Inflation (growth of consumer prices) in Ukraine in October 2016 compared to September accelerated to 2.8% from 1.8% recorded in September to August.
The State Statistics Service says that from the beginning of the year, in January-October, consumer prices rose by 9.4%.