The National Bank of Ukraine announced the start of a systemic update of the operational design of its interest rate policy. This was discussed at a press briefing by the leadership of the national financial regulator, which took place on Thursday, July 30, reports UNN.
Details
The key goal of the reform is to revive the domestic money market, form reliable market benchmarks for the cost of resources, and strengthen monetary transmission (the mechanism through which the National Bank's rate decisions affect real rates on deposits and loans in the economy).
Ultimately, this will allow the NBU to more effectively fulfill its main task — ensuring price stability and protecting citizens' hryvnia savings from inflation.
First stage: new rules for three-month deposit certificates
The reform will start on August 7, 2026. The first changes will affect the instrument of three-month deposit certificates (DCs), through which the regulator attracts banks' free liquidity.
Instead of the current mechanism, where the National Bank fully satisfied all applications from financial institutions, a tender approach is being introduced.
This means that the NBU will hold interest rate tenders with a pre-announced placement volume. Auctions will take place once every two weeks.
This step will force banks to manage their own liquidity more flexibly and responsibly.
What the new reform means for depositors and bank deposits
The link between attracting citizens' funds and banks' access to NBU instruments is maintained. The ability of financial institutions to place liquidity in three-month certificates will continue to directly depend on their activity in the market of term hryvnia deposits from the population.
At the same time, placement volumes will now be determined based on the results of tenders. The National Bank will set tender limits with a focus on maintaining the high attractiveness of hryvnia instruments for citizens. This will encourage banks to continue competing for depositors and offer favorable rates on term deposits in the national currency.
Step-by-step approach and monitoring of results
The National Bank emphasizes that the update of the operational design will take place gradually. Each subsequent step will be based on a detailed analysis of the results of the previous one.
The regulator will monitor:
- the impact of the new rules on the interbank money market;
- the dynamics of deposit rates for the population and
business;
- demand for hryvnia assets and the level of competition among
banks;
- the overall monetary conditions in the country.
Therefore, one should not expect a drop in rates on hryvnia deposits after August 7. The NBU's changes force banks to compete for citizens' savings in order to maintain their own profitability.
If necessary, the NBU reserves the right to adjust the parameters and limits of tenders.
The main benchmarks for the regulator will remain maintaining the appropriate tightness of monetary conditions, controlling inflation, and supporting financial stability.
The National Bank will additionally inform about the introduction of subsequent stages of modernization based on the results of the adoption of relevant decisions by the Board.
Reminder
Earlier we wrote that the National Bank of Ukraine raised the key policy rate to 15.5% due to a sustained increase in fundamental price pressure. The regulator plans to return inflation to the 5% target in 2027.