OREANDA-NEWS. On July 07, 2008 The National Bank Council raised the money supply forecast from 30-35 percent to 35-40 percent in 2008, NBU Council Head Petro Poroshenko told a press conference.

As NBU Board Chairman Volodymyr Stelmakh, who attended the press conference, specified, a real dynamics of the money supply will depend on the budgetary expenses in the current year.

"If the budgetary expenses are economical, we will have 35 percent, and probably less... But we cannot exceed 40 percent because it will stimulate additional development of inflation", he said.

The monetary base increased by 5,7 percent in June 2008 in Ukraine (8,7 percent since the year start) to UAH 154,2 billion, and the money supply - by 4,7 percent (by 13,6 percent since the year start) to UAH 450 billion.

Within the framework of fighting inflation the National Bank pursues a considerably more strict monetary policy this year as compared with previous years, for this it is subject to criticism on the part of producers for a jump in prices for credit resources under conditions of the internal liquidity reduction and limitation of an access to external credits due to continued instability on the international financial markets.

Last year, the monetary base increased by 46 percent in Ukraine, and the money supply - by 52,2 percent under inflation of 16,6 percent.