Starting next year, the National Bank will be determining prices
Starting next year, the NBU will not by just evaluating inflation or making forecasts about it, and will be also determining the prices.
This was written by the DW.
Already, the National Bank has formulated ambitious tasks for the next four years, the publication informs.
"By the end of the next year the inflation should decline to 12% and fall further. In 2017, inflation should reach a single digit. By the end of 2019, it should go down to 5%," - the head of the NBU Valeria Gontareva said.
According to the State Statistics Committee, since the beginning of 2015, prices in Ukraine have risen by 38.2%.
In order to reduce the rise in prices, the Ukrainian central bank plans to take a number of measures. The main of them is not to print too much money, the article states.
"The National Bank will limit the growth of money supply. Simply put, we will not be recklessly printing money" - the deputy head of the NBU Dmytro Solohub explains.
The National Bank will also be gradually reducing cost of money in Ukraine. To do this, it has already begun to reduce the discount rate, which all loans in the economy are based on.
Last month it was lowered from 30 to 22 percent, and the regulator has no plans to stop there. This means that the cost of the National Bank loans for banks will decrease.
Experts believe the NBU's plans for the next year are too optimistic.
Market participants also point out that prices may increase due to massive development of loans, which can begin after a while.
Also, inflation in Ukraine is affected by factors which the National Bank can not influence.
"The NBU can not control gas prices and tariffs for heat. They are still far from the market level and will rise significantly in the future.Also the cost of oil and grain affects the inflation," - senior economic strategist at the investment company AYA Capital Pavlo Illyashenko says.
Another major obstacles to decrease of the prices will be the fact that they are too influenced by exchange rate fluctuations.
But the National Bank hope that the devaluation will not put pressure on prices.