Chairman of the National Bank Yakov Smolii considers that Ukraine should not return to the fiscal dominance regime, and NBU should remain independent, he reported, opening the annual research conference in Kyiv, FinClub reports.
Smolii reminded that three years ago, the fiscal dominance in Ukraine was ended.
“The National Bank obtained a real institutional independence and updated mandate. Namely, from this time, NBU policy was officially aimed at ensuring the price and financial stability for furthering sustainable economic development of Ukraine”, NBU Chairman informed.
According to Yakov Smolii, the preconditions for withdrawal from the fiscal dominance and implementation of the inflation targeting regime were created now.
According to NBU forecasts, this year, the inflation will decrease to one-figure level, in mid-2019, it will go down in the target range, and in 2020 – it will reach 5% level.
“Today, looking backward, we are confident that our country will never return to fiscal dominance”, he added.
It was previously reported that the National Bank counts on starting a new program of cooperation with the International Monetary Fund.
