andriy pyshnyy : national bank of ukraine press briefing - monetary policy decisions speech by mr andriy pyshnyy, governor of the national bank of ukraine, at a press briefing on monetary policy decisions, kyiv, 8 december 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 nbu has also decided to raise reserve requirements for banks. this will enhance monetary transmission, support exchange rate stability, and gradually slow inflation in 2023. inflation continues to grow as expected, but the growth is slower than forecast by the nbu. the consequences of the war are the main reason behind this year's increase in inflation. they lead to higher production costs and shortages of some goods. in particular, an escalation of attacks against energy infrastructure of ukraine : affects economic activity in various sectors – from metals industry to food industry, animal farming, and the services sector causes production cuts, leading to a decrease in supply of goods spurs households'demand for fuel, which creates additional pressure on energy prices. all of the above is driving an increase in prices for a wide range of goods and services, with prices for some items surging. at the same time, overall inflation dynamics remain under control, and prices are rising slightly slower than forecast by the nbu. first, the gradual tightening of monetary conditions following the key policy rate hike to 25 % in june and fixing the official hryvnia exchange rate are playing a major role in stabilizing inflation expectations. second, fx market regulation and the introduction of new savings protection instruments contributed to a narrowing of the spread between the hryvnia exchange rate on the cash market and the official exchange rate. third, the nbu and the government are following their joint plan to cut monetary financing of the budget deficit. coupled with the above factors, this helps ease pressures on the fx market and reduce net fx sales by the nbu. 1 / 4 bis - central bankers'speeches in addition, large inflows of financial assistance drove an increase in international reserves to almost usd 28 billion, which exceeds the pre - war level. this strengthens the nbu's capability to maintain exchange rate stability. unchanged utility tariffs also remain important for restraining inflation. after this year's inflation surge, the growth in consumer prices will slow as of the end of next year. this should

mandate, including considerations on a new short - term liquidity instrument and a new non - financial policy cooperation instrument ”, and i understand that this work is receiving attention at the highest level in the imf. an improvement in the imf policy toolkit and financing instruments would assist in closing the gaps in the financial system and, in so doing, assist with improving the resilience of economies to exogenous shocks. the imf and regional institutions in africa should further explore ways to improve access for african countries to the gfsn beyond what is available at multilateral financial institutions. the importance of regional financing arrangements ( rfas ) remains key to strengthening the gfsn, and they provide multilateral insurance properties of a different nature to the safety net. however, there is a need for african countries to work together with the imf in developing rfa facilities in the region. 6. conclusion in conclusion, the new global cycle, partly characterised by normalisation in the global financial markets after a prolonged period of a low interest rate environment and reforms in the banking sector, harbours both challenges and opportunities for emerging market economies. the interconnectedness and interdependencies of our economies makes international cooperation indispensable, and the rhetoric around trade protectionism and pushback against multilateralism is occurring at a time when we can least afford it. however, any success in international cooperation will only be achieved if it is built on maintaining macroeconomic policy discipline and strengthening the depth and regulation of financial markets at individual county level. thank you for your attention. page 7 of 8 page 8 of 8