The National Bank of Ukraine has published a recap of its sixth annual online workshop on monetary policy in emerging markets, which examined how the financial system, including lending and savings behaviour, shapes monetary transmission under extreme uncertainty. The NBU distilled three main messages from the event: central banks should protect long term price and macrofinancial stability rather than pursue short term gains, communication becomes an even more important policy tool in crises, and policymakers need better diagnostics of how transmission changes across sectors and regions when economies are hit by prolonged shocks. Participants from the International Monetary Fund, the Bank for International Settlements, the central banks of Ukraine, Spain and Latvia, and academia argued that monetary policy has limits when economies face structural problems, and that high public debt and the growing role of non-bank financial intermediaries can weaken or complicate the pass through of policy impulses. Research presented at the workshop was described as a diagnostic map to help central banks identify transmission bottlenecks, while IMF contributors urged central banks to integrate the financial sector more fully into their analytical models. The NBU linked these themes to Ukraine's experience, stating that changes to the operational design of its interest rate policy in 2023 strengthened transmission and helped keep inflation under control, while efforts to develop bank lending, remove regulatory barriers and create incentives for key industries have coincided with double digit lending growth for a third straight year.
National Bank of Ukraine2026-05-20
National Bank of Ukraine publishes three lessons on monetary transmission and stability from emerging markets workshop
The National Bank of Ukraine published a recap of its sixth annual online workshop on monetary policy in emerging markets, highlighting how financial system structures and behaviour shape monetary transmission under extreme uncertainty. The workshop stressed the need to prioritise long term price and macrofinancial stability, strengthen crisis communication, and improve diagnostics of transmission across sectors and regions, including by better integrating the financial sector into analytical models. The NBU linked these themes to its 2023 interest rate operational changes and lending support measures, which it said have strengthened transmission, contained inflation and supported lending growth for a third consecutive year.