nbu is pursuing the policy of steering inflation to a point target of 5 % within an extended policy horizon of up to three years. inflation targeting reduces uncertainty, while flexibility allows us to take current economic conditions into account – including structural shocks caused by the war. flexible inflation targeting has its own distinct features. 2 / 4 bis - central bankers'speeches first, we focus on long - term goals. even in crisis conditions, we adhere to inflation benchmarks, paving the way for a gradual return to full - fledged inflation targeting. second, our monetary policy reacts to the conditions of the day : we have a broader monetary policy horizon under the transitional regime, which allows us to quickly adapt and respond to new shocks, such as energy crises or supply chain disruptions. third, flexible inflation targeting involves the use of a combination of instruments. apart from interest rate policy, we maintain an active presence in the fx market and impose caps on capital movements. as favorable prerequisites emerge, however, we continue our movement towards more market - based mechanisms. we will give special attention today to this third feature, as the use of a combination of policy instruments is not unique to ukraine and is increasingly seen in other small open economies. in fact, the main task of this workshop is to find an effective balance between the instruments used – in particular those based on advanced macroeconomic analysis. the fourth important feature of a flexible monetary regime is a high level of interaction between the fiscal and monetary authorities. the nbu cooperates closely with the government in raising external financing and implementing reforms in ukraine. at the same time, this cooperation implies that authorities must respect each other's mandates. which brings us to the fifth feature : the nbu strives for transparent, active communications with every target audience. we freely explain our decisions to avoid misleading market participants, experts, government officials, investors, and the public. we do this to maintain their trust – the primary anchor for an effective policy. through this approach, ukraine has been able to retain macrofinancial stability while setting the stage for economic recovery, despite continuing to face massive challenges. in addition to internal transformation, an important component of resilience is close cooperation with international partners. for ukraine, cooperation is now an integral element of macrofinancial stability. and at this point i'd like to reiterate our gratitude to our partners for the expert, financial, military, and humanitarian assistance they have provided. today we are one thousand and fifteen

days into the war. in the first hours of the invasion, and further on, the nbu received overwhelming support from central banks and international organizations and institutions. the unprecedented support we have obtained from the international monetary fund, the world bank, the european union, and the united states has been truly invaluable, and has enabled ukraine not only to confront the consequences of the war, but also to look ahead and plan for long - term recovery. 3 / 4 bis - central bankers'speeches we took full advantage of this help, and now that we are on the path to recovery, we are actively exchanging our experience with our colleagues from other countries, via events such as this workshop. sharing knowledge is also a powerful resource, and, we are excited to share our expertise with you while continuing to refine our approaches. the challenges facing us may differ, but we all share a common goal – to create a sustainable economy capable of ensuring the stable development of countries. i believe that integrated approaches, the exchange of experience, and international cooperation are key elements for success in this endeavor. today we will review cutting - edge research into topics such as fx interventions, capital controls, international reserves, and the interaction between fiscal and monetary policies. we will be honored to hear a report from leading imf economists jesper linde and marcin kolasa on the integrated policy framework. i'm confident that their presentation will set the foundation for fruitful discussions on the practical aspects of an integrated approach. another highlight of today's workshop will be a presentation of the imf's extended quarterly projection model, or qpm. following the qpm presentation, we will hold a panel discussion with leading industry experts, chaired by natan epstein of the imf, about the specifics of implementing an integrated approach in our core macro models. this is of great practical importance to us, as we have been working closely with the imf team to improve our own modeling toolkit. i hope that today's event will be a source of new ideas and solutions for us all. thank you for your attention, and i wish you productive discussions!. 4 / 4 bis - central bankers'speeches