NBU should refocus its activities on growth of Ukraine's economy – expert
KYIV. April 12 (Interfax-Ukraine) – The National Bank of Ukraine (NBU) should refocus its activities on the country's economic growth and job creation, which demonstrates the efficiency of its operation, the ex-deputy head of the NBU, the rector of the International Institute of Business, Oleksandr Savchenko, has said.
"The main function of the central bank is to be seen not in some mythical exchange rate stability but the growth of economy and the number of jobs, i.e. the growth of GDP under the condition of financial stability is the main indicator of the NBU operations. It is necessary not only to reshuffle the NBU staff, but also change the philosophy," he said at a press conference at Interfax-Ukraine.
At the same time, he noted that the U.S. central bank has such a philosophy, its objective function is to increase the number of jobs amidst financial stability.
"In fact, the central bank in Europe also works for the economic growth of the European zone, using such instruments as quantitative easing, near-zero rates, under which business in the West receives loans," Savchenko added.
"In the current conditions the central bank determines the rate of economic growth and financial stability in the country, being responsible for inflation. Loans are "fuel" for the economy, the precondition for economic growth. Therefore major responsibility for the decline in GDP in 2015 depends on NBU policy," Savchenko said, noting that in 2015 lending collapsed by 20%.