Operational design of monetary policy National Bank оf Ukraine

Harkusha Yuliya
PHD in Economy, Аssociate professor of the Department of Banking, Odesa National Economic University, Odesa, Ukraine, E-mail:yulyaharkusha@gmail.com, ORCID ID: https://orcid.org/0000-0002-4584-830X

Cite this article:

Harkusha Yu. (2024) Operational design of monetary policy National Bank оf Ukraine. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Operatsiinyi dyzain monetarnoi polityky Natsionalnoho banku Ukrainy; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 5-6 (318-319), pp. 33-38.

Abstract

The article examines the theoretical and methodological foundations of the operational design of the monetary policy of the National Bank of Ukraine. It is noted that the operational design of the central bank's monetary policy is a set of tools that the central bank uses to implement monetary policy and the relationships between them. It was determined that the operational design of the monetary policy includes separately the operational design of the interest policy, the refinancing policy, the reserve policy, and the policy of the central bank in the open market. It is noted that the implementation of the operational design of the interest policy involves not only a change in the key rate, but also the implementation of a set of relevant operations and the transmission of impulses through the channels of the transmission mechanism of monetary policy to achieve the set goals. Defining the operational design is a dynamic process that can change depending on the money market situation. In order to achieve monetary goals, including price stability, national regulators adapt operational design to changes in banks' liquidity, as well as macroeconomic and external conditions. It should be added that under the "Middle of the Corridor" system, the central bank tries to keep interest rates in the established corridor relative to the key one. This system is implemented under the condition of shortage of banks' reserves. In the event of oversaturation of liquidity in the banking system, the "Lower Boundary" system is used, according to which the level of market rates approaches as close as possible to the key one. It is indicated that the change in the discount rate affects such indicators as the offer of credit, interbank market rates and expectations of changes in interest rates. Based on the results of the study, it is proposed to significantly reduce the key rate under conditions of low inflation, which will revive the lending activity of banks and contribute to the economic recovery of the country.

Keywords

central bank, monetary policy, operational design of monetary policy, interest rate policy, discount rate.

JEL classification: Е500; Е520; Е580; Е500; DOI: https://doi.org/10.32680/2409-9260-2024-5-6-318-319-33-38

UD classification: 336.7

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