Improvement of Approaches to Discount Rate Determining by Central Bank in Conditions of Investment Crowd-out
The subject of the research is the analysis of modern approaches to determining the main refinancing rate by the central bank and the identification of indicators that influence its changes in conditions of unstable inflation and investment deficit. The purpose of the article is to analyze the current state of the banking sector in Ukraine from the point of view of promoting capital investment growth, analysis of investment crowd-out resulting from growth of government bonds yield and identification of auxiliary factors and indicators for determining the discount rate with account of specifics of financial market of Ukraine. Methodology of the work capital flow model, Taylor rule, theory of investment crowd-out. The results obtained - The advantages and disadvantages of taking into account macroeconomic factors, as well as rules and indicators while adjusting the discount rate of the central bank are considered, and the indicators to be taken into account for Ukraine are proposed. Conclusions - additional involvement of yield curve spread for T-bills and the rates of key central banks in the world in the event of a change in the discount rate in Ukraine will enable to predict the demand for credit funds and to conduct a more discretionary purchase or sale of government bonds while promoting investment growth.