NBS Estimates That Price Growth Will Continue by Mid-2022

The governor of the National Bank of Serbia, Jorgovanka Tabakovic, stated today at the presentation of the report on inflation trends in Serbia that the negative trend would continue all the way until mid-2022.

She pointed out that the inflation in Serbia was a consequence of unfavorable international factors, such as the growth of the price of oil, energy sources and agricultural products, which have led to a y-o-y inflation being at 6.6%, which is above the upper limit of the projected target band.

– According to our new central projection, we expect the y-o-y inflation to temporarily be above the upper limit of our target band by the middle of next year, when it will first return within the band and then go in the lower part of the target band by the end of 2022, where it will remain in 2023 as well – Tabakovic stated and added that, in that period, unfavorable factors from the international environment were expected to be lowered as well.

Regarding the measures that the central banking institution is taking to reduce the inflation, Tabakovic said that, at that moment, they relied the most on non-expansive monetary policy methods.

– Since October, the NBS has increased the average effective rate at the auctions of repo sale of securities by 17 base points, so it is currently 0.28%. Also, since October, the organization of the auction of repo purchase of securities, through which dinar liquidity was secured for banks, has been suspended – she added.

Narodna banka Srbije Beograd

National Bank of Serbia

NBS

Jorgovanka Tabaković

inflation

infrastructure

surplus

economic growth