Overview
Ukraine's top central banker said that the spike in oil prices associated with the war in the Middle East has already translated into higher consumer prices across Ukraine and could lift inflation by 1.5 to 2.8 percentage points.
Policy stance and target
National Bank of Ukraine Governor Andriy Pyshnyi said the central bank will maintain its objective of reducing inflation to 5% over a three-year horizon. He emphasized that the bank will employ all tools at its disposal to achieve that goal.
Political and financial developments
Pyshnyi welcomed the results of recent elections in Hungary, which saw President Viktor Orban swept from office. He said he hoped the change in Budapest would resolve delays surrounding the European Union's planned 90 billion euro support package for Ukraine. The governor reiterated that Orban - whose party lost the national vote to the upstart centre-right Tisza party - had previously blocked implementation of the EU loan, citing a dispute over a war-damaged pipeline.
Engagements in Washington
Pyshnyi is part of a sizable Ukrainian delegation attending the spring meetings of the IMF and the World Bank. He said the delegation's aim is to ensure that Russia's war on Ukraine - now in its fifth year - remains on the international agenda despite the emergence of a new conflict in the Middle East.
The governor outlined a schedule of bilateral contacts in Washington: a meeting with U.S. Treasury Secretary Scott Bessent and other senior U.S. officials on Wednesday, discussions with U.S. lawmakers on Thursday and a meeting with Federal Reserve Chair Jerome Powell on Friday.
Economic consequences of recent attacks
These engagements come in the wake of extensive Russian strikes on Ukraine's energy infrastructure. Pyshnyi warned that those strikes will weigh on economic growth and prompt increased migration outflows.
Currency note
($1 = 0.8509 euros)
This article summarizes remarks and developments reported by Ukrainian authorities and reflects their stated positions and assessments.