guarantee that the budget is funded without relying on central bank financing. with this in mind, it is critically important to meet the conditions of the imf - supported program on time and in full. war grinds on and remains a key risk to the economy and inflation developments high uncertainty persists over when the active phase of hostilities may come to an end. prolongation of hostilities continue to pose the risk of dealing more significant damage to the ukrainian economy's potential and triggering unpredictable inflationary shocks. other risks also persist, including : decreased amounts or disruptions of international aid disbursements, in part due to failure to meet the conditions of the imf - supported program on time or in full the emergence of additional budget needs to maintain defense capabilities and substantial quasi - fiscal deficits, in the energy sector in particular the resumption of significant power shortages because of the substantial damage sustained by energy infrastructure, which will restrain economic activity and exports, fuel the growth in imports, and raise pressure on the fx market and therefore on consumer prices ongoing difficulties with exporting agricultural products, in particular if countries extend or expand their trade restrictions, and if the shelling of port and agricultural infrastructure continues amid the termination of the black sea grain initiative. taking into account the balance of risks, a sharp fall in inflation, and the nbu's ability to safeguard exchange rate stability, the nbu board decided to cut the key policy rate, to 20 %. the cycle of interest rate policy easing the nbu launched in july decreased nominal interest rates in the banking system, as was to be expected. in spite of that, the yields of hryvnia assets remained attractive, thanks to the dramatic fall in inflation and improved expectations. interest rates on term hryvnia deposits and domestic government debt securities have continued to exceed both current inflation and the inflation rate expected by households. as a result, household demand for bank deposits with maturities from three to 12 months and domestic government debt securities has continued to rise. maintaining relatively high yields on hryvnia instruments is important for the continued implementation of the strategy for easing fx restrictions, transitioning to a more flexible exchange rate and returning to inflation targeting. however, given the high sensitivity of the fx market and a substantial surplus of hryvnia liquidity, more rapid cuts in the key policy rate would increase risks to exchange rate stability and the steady decline in inflation. 2 / 3 bis - central bankers'speeches in view of that, starting

world economy. i would like us all to remember that central bank independence is both a goal and a huge resource for countries. the results of the imf study cited by ms georgieva confirm that independence is critical to winning the fight against inflation and achieving stable long - term economic growth. independence is the basis for trust in a central bank's actions. the value of such credibility in unstable times is extraordinary. and so we must keep this challenge in mind today. last but not least, i will mention a phrase that has been enshrined in the nbu's mission since 2023. it is a very simple and clear message : we remain committed to our goals of 5 / 6 bis - central bankers'speeches ensuring price and financial stability. and we take responsibility to achieve these goals under any circumstances. this sentence covers all of the talking points laid out above and leads us to the third, key question : how should a central bank transform itself to remain sustainable and effective in the new normal? what should be changed, and what should stay the same? we have three panels and a keynote speech by ms gita gopinath ahead of us, and these questions will be raised without a doubt. this discussion is crucial for us. we are open to searching answers together. it is important that we " write this textbook " on the operation of central banks in wartime, and that we write it together under conditions of extreme uncertainty. i look forward to watching the panels and gaining new insights. let's have a fruitful day of discussions. 6 / 6 bis - central bankers'speeches