NBU: Tight monetary policy did not lead to significant reduce of inflation rate

The Council of the National Bank of Ukraine (NBU) at the meeting on July 23 heard a report of the NBU Board on the implementation of the Basic Principles of Monetary Policy in the H1, 2019, the head of the Board, Bohdan Danylyshyn, informed on Facebook.

According to the report, the NBU Council acknowledged that despite the relatively tight monetary policy, during the first half of 2019, inflation continued to exceed the target range defined by the Fundamental Principles of Monetary Policy for 2019.

“Current inflation rate continues to exceed the target range defined by the Basic Principles, primarily because of higher (than expected) rates of growth in household incomes and higher administratively-regulated prices and tariffs, as well as negative food market shocks,” Bohdan Danylyshyn wrote.

In addition, the Council of the National Bank of Ukraine recommended the NBU Board to prepare, by the end of Q3, 2019, a separate report explaining the reasons for the long-term deviation of the actual values ​​of the CPI (consumer price index) growth from the goals and measures declared by the National Bank to be adopted by the financial institution and other government bodies in order to bring inflation to expected level in 2020.

As The Journalist reported, NBU issued UAH 50 coin.