The NBU Modernizes the Operational Design of Interest Rate Policy: What Will Change
The National Bank of Ukraine announced that it is starting to modernize the operational design of interest rate policy, the strategic goal of which is to activate the money market and develop reliable market benchmarks for cost on it.
The regulator notes that the changes will strengthen the NBU’s ability to fulfill the main task of monetary policy – ensuring price stability – by increasing the efficiency of monetary transmission.
As part of the first stage of modernization, the mechanism for conducting operations with three-month deposit certificates is changing.
From August 7, 2026, instead of fully satisfying banks' requests, the NBU will conduct interest rate tenders with an announced placement volume of this instrument once every two weeks.
"Banks' ability to place liquidity in this instrument will continue to depend on their activity in the term hryvnia deposit market of the population. At the same time, the actual placement volumes will be determined based on the results of the tenders, which will encourage banks to work more actively with their own liquidity," the statement says.
The NBU will set the volumes of interest rate tenders focusing on maintaining the attractiveness of hryvnia instruments.
"Further stages will be implemented gradually, and the National Bank will inform about them following the decisions made.
They will take into account the need to maintain adequate monetary policy tightness to ensure price stability, as well as support incentives for banks to compete for depositors.
Each subsequent stage of modernization of the operational design will be based on the results of the previous stage. The NBU will analyze the impact of changes on the money market, deposit rates, demand for hryvnia assets, the effectiveness of interest rate transmission, and overall monetary conditions.
If necessary, the parameters of the operational design may be adjusted," the regulator added.
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