THE INFLUENCE MONETARY POLICY ON THE INVESTMENT CLIMATE IN UKRAINE

Анотація

The post-war reconstruction of Ukraine requires the activation of investment activity and improvement of investment attractiveness, which form the investment climate in the country. One of the problematic issues of limiting investment activity in Ukraine is the availability of funds to finance investments. The purpose of the article is to highlight individual results of the study aimed at improving the theoretical and methodological foundations for assessing the impact of monetary policy on the formation of a favourable investment climate. Analysis of the dynamics of capital investments in Ukraine over the past 7 years shows a positive trend of their growth. But the main source of investment financing is the company's own funds, and bank loans are practically not used in investments. The inflation targeting regime of the National Bank of Ukraine monetary policy introduced at the end of 2022 is aimed at curbing inflation within 5%, and this is possible thanks to an increase in the discount rate (25%). But inflation control has a double effect: it restrains inflation and production (slows down aggregate demand). It should also be taken into account that economic indicators change with a delay under the influence of monetary policy. This is due to the fact that deposit and lending rates, determined directly by market participants, react to changes in the discount rate not immediately, but with a certain lag. The monetary policy has a direct influence on the supply of money in the money market. The choice of monetary policy regimes is mediated through the interest and credit channels of the transmission mechanism of monetary policy, which affect investment activity in the country, but with a certain lag, the duration of which is determined by subjective factors. The analysis of capital investments for the period 2015–2021 and the main indicators of monetary policy showed the need for the simultaneous use of state instruments for the regulation of investment activities in the country. The development of systemic state policy measures and their combination with monetary policy instruments should be aimed at establishing confidence and stimulating capital investments to overcome the investment crisis.

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