TABAKOVIC: Inflation under control

Jorgovanka Tabakovic (Photo: YouTube/screenshot)

The Governor of the National Bank of Serbia (NBS), Jorgovanka Tabakovic said all measures of the central bank in the next period will be focused on inflation stabilization at low and sustainable level.

In her interview for Novosti, Tabakovic estimated that measures which the new minister of finance, Dusan Vujovic, is announcing “right order of moves” for introducing order in public finances and their set up at sustainable basis.

- Dragging the money out of the pockets of those already paying taxes is the easiest thing to do. It is more difficult, but possible, decrease grey economy and show cheating of the state is not profitable – Tabakovic who has been heading the central bank for two years now says.

She adds it can be done only through the Law on accounting.

According to her, macro economical stabilization, i.e. maintaining inflation at the low level and public finances consolidation are the best way to help economy in the long run.

When commenting the dinars exchange rate, she explained foreign currency oscillations are common in the flexible foreign exchange rate regime and that basic reasons originate from international environment and that they relate to independent geopolitical situation with respect to Ukraine and monetary policy of the American Federal Reserves.

Domestic environment influences, she added, are related to the public finances consolidation tempo and foreign currency demand increase.

When it comes to potential VAT increase, Tabakovic pointed out that before any such a decision, the effects of previous similar measures should be considered.

She also expressed she believes that interest rates decrease which has already started, will continue in the upcoming period as well.