The National Bank of Ukraine (NBU) has made radical changes in monetary policy, the oversight program and internal structure in the past two years, managed to strengthen its financial independence and passed the point of no return, NBU Head Valeriya Gontareva has said at the annual research conference "Transformation of Central Banks' Activities" in Kyiv.

"In recent years we have gone through radical changes in monetary policy, the oversight program and internal structure. We have strengthened the financial independence of the NBU, therefore managed to reach the point of no return. It is always difficult to assess how irreversible changes will be, but our board considers we have turned the page and won't come back," she said, stressing that the NBU's task was an updated policy aimed at pricing, financial stability and sustainable economic development.

At the same time, she noted the National Bank had moved to a flexible rate fixing, and now the hryvnia exchange rate is determined solely by fundamental factors, while the regulator is involved in the market only to smooth out fluctuations.

Gontareva said the National Bank from the year start transferred to a monetary regime of inflation targeting.

"The target inflation rate for 2016 is 12%, we hope we'll retain it. We estimate inflation for next year at 8%, and by late 2019 at 5%, which is considered to be the best level for Ukraine. I believe we will be able to meet these targets," Gontareva said, noting that inflation in 2015 was 40%, of which 20% was due to the increase in regulated tariffs, and 20% because of devaluation.