kyrylo shevchenko : national bank of ukraine press briefing monetary policy statement speech by mr kyrylo shevchenko, governor of the national bank of ukraine, at a press briefing on monetary policy, 21 july 2022. * * * dear colleagues, i would like to inform you that the board of the national bank of ukraine has decided to keep the key policy rate at 25 % per annum. the decision to raise the key policy rate taken in june will continue to push up market rates. improved attractiveness of hryvnia assets, coupled with the change in the official exchange rate, will dampen demand on the fx market. this will allow maintaining sufficient international reserves and ensuring macrofinancial stability in ukraine. how have prices changed since the onset of the war? inflation has been accelerating but is under control. in june, the pace of growth in consumer prices was 21. 5 % yoy. the consequences of the war are the main reason for the rise in inflation. they include a disruption of supply chains, a decrease in supply of some goods, higher business expenses, physical destruction of production facilities and infrastructure, and temporary occupation of some territories of ukraine. persistently high global energy prices and record - high inflation in trading partner countries also fueled price pressures in ukraine. on the other hand, administrative measures of the nbu and the government – namely, fixing the hryvnia exchange rate and natural gas and heating tariffs – restrained inflation. how will prices behave going forward? inflation pressures will persist in late 2022 : consumer prices will grow by more than 30 % yoy. the consequences of the war and high global prices, especially energy prices, will remain the main factors. under such conditions, the nbu will conduct tight monetary policy. it will allow maintaining inflation expectations, raising interest in hryvnia assets, and reducing pressures on international reserves. these measures will support financial stability and partially lower inflationary pressures. the nbu's baseline scenario contains a number of assumptions, including the assumptions that in 2023 logistics will recover, businesses will face lower risks, and 1 / 4 bis - central bankers'speeches harvests will increase gradually. such developments will help improve inflation expectations and reduce inflationary pressure by partially overcoming the adverse effects of the war that restrain the recovery of supply. a decline in global inflation and the nbu's tight monetary policy will additionally foster disinflation. at the same time, persistently high energy prices will limit di

with a monthly limit of uah 50, 000 and without the right for early termination. this will reduce the demand for cash foreign currency. 3 / 4 bis - central bankers'speeches second, today the nbu has introduced additional measures to minimize the use of international reserves on things that are not a top priority in wartime. more specifically : individuals will still be allowed to withdraw abroad the equivalent of uah 50, 000 from their hryvnia payment card accounts per month. however, the monthly limit on abroad fx cash withdrawals from hryvnia card accounts has been replaced with a weekly one : the equivalent of up to uah 12, 500 per seven calendar days. the monthly limit on card - based p2p transfers from ukraine abroad, using hryvnia cards issued by ukrainian banks, has been reduced to the equivalent of uah 30, 000 per month from uah 100, 000. a monthly limit of uah 100, 000 ( in the equivalent ) has been set on hryvnia cardbased payments outside of ukraine from all of a customer's hryvnia accounts opened with a bank. most ukrainians staying abroad will not be affected by these restrictions. third, the nbu has changed the algorithm for calculating the banks'open fx position limits to reduce potential demand for foreign currency. the new requirement will come into force on 1 august 2022. all of the restrictions imposed since the beginning of the war are temporary measures. that said, today they are one of the wall of the country's " financial fortress. " it is keeping the economy afloat in wartime, and will contribute to the economy's more rapid recovery after the war. thank you for your attention! 4 / 4 bis - central bankers'speeches