INTERVIEW JORGOVANKA TABAKOVIĆ, GOVERNOR OF THE NATIONAL BANK OF SERBIA
WE DEFEND STABILITY AND THE INTERESTS OF
CITIZENS AND BUSINESSES We remain determined, even under conditions of increased geopolitical uncertainty, to implement – without delay – all measures necessary with a wide range of regulatory mechanisms, with the aim of protecting the financial stability and interests of citizens and businesses
T
he development of events at the global level suggest that we’re entering a period of inflationary struggles. After a long period without change, Serbia’s central bank, the National Bank of Serbia (NBS), was recently compelled to raise the key policy rate, within the framework of broader measures taken by the Government of Serbia to curb the effects of inflation. We asked NBS Governor Jorgovanka Tabaković about the central bank’s forecasts on how long these inflationary pressures will last. “We took the decision to increase the key policy rate in an environment of inflationary pressures on the global and domestic markets that are stronger and more persistent than expected, and here one should bear in mind that we started the moderate tightening of monetary conditions back in October last year,” explains our interlocutor. “When it comes to how long the pressures will persist, they are largely related to the duration of the conflict in Ukraine, but also its outcome and ramifications, so it isn’t possible to predict its full impact on food and energy prices.” Nevertheless, under the assumption that a solution to the ongoing crisis in Ukraine will be found in the coming months, Tabaković believes that it could be said that inflation will start to fall from the middle of this year, supported by the effects of the previous tightening of monetary conditions and a lower than planned fiscal deficit. The Government’s measures on restricting fuel price hikes will also contribute to reducing inflation, as will the temporary ban on exports of certain cereals and other food products.
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Financial Sector Serbia 2022
