Bank of England Inspired by Ukraine Central Bank Contingency Planning

Crisis response measures by the National Bank of Ukraine (NBU) in the wake of Russia’s full-scale invasion have become a source of knowledge for the UK, according to Bank of England Governor Andrew Bailey, speaking at a conference in Kyiv.

Bailey was a keynote speaker during the ninth Annual Research Conference “Economic and financial integration in a stormy and fragmenting world,” organized by the NBU and Narodowy Bank Polski in Kyiv.

“We at the Bank of England have learned in our contingency planning from what you do when it comes to serious disruptions to payment systems and to everyday banking business. ‘Cause you do it for real,” Bailey said during the opening speech at the conference.

In his speech, he praised the NBU for its anti-crisis response to the economic shock caused by Russia’s full-scale invasion ni 2022. Ukraine’s GDP declined by 28% at that time, with millions of displaced persons and damage to Ukraine’s economy threatening national currency stability.

Although the damage was severe, Ukraine’s banking system did not stop for a day during the hostility and uncertainty that swept through the country three years ago.

“Your experience has been extreme in so many respects. In the face of full-scale war, you’ve had to adapt a combination of interest rates and exchange rates, policy instruments, foreign currency restrictions and other tools as necessary. But you’ve been very clear in public, that after the security risks abate, and appropriate macroeconomic conditions are in place, you will return to conventional inflation targeting,” Bailey said.

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Russian Communist Party lawmaker Vyacheslav Markhaev warned in a Telegram post that Russia is “on the brink of a social explosion,” citing corruption, economic strain and war losses in Ukraine. He criticized rising utility costs, inequality, and lack of a plan to end the war, while claiming worsening domestic instability and governance failures.

Bailey reaffirmed the UK’s support Ukraine in its defense efforts during his visit. President of the European Central Bank (ECB) Christine Lagarde also delivered a speech at the same conference, surprising Ukrainians with an unexpected visit to Kyiv, despite a devastating Russian attack on Ukraine’s capital on June 17.

President Volodymyr Zelensky said Russia launched 440 drones and 32 missiles in total, targeting cities across the country.

Just like Lagarde, Bailey laid flowers at a memorial honoring soldiers killed during more than 10 years of Russia’s war against Ukraine, which started with the 2014 annexation of Crimea. NBU governor Andriy Pyshny accompanied Bailey at the memorial.