Jelašić optimistic about inflation

The NBS governor says he expects inflation to remain within the projected of level six percent by the end of the year.

Izvor: Tanjug

Saturday, 02.08.2008.

18:28

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The NBS governor says he expects inflation to remain within the projected of level six percent by the end of the year. Radovan Jelasic said that the recent 8.4 percent increase in energy prices would reflect in August’s inflation rise, but added that he was optimistic regarding an overall reduction in inflation by the end of the year. Jelasic optimistic about inflation Jelasic said that the measures taken by the NBS would give the anticipated results. He said that he was convinced that inflation in the next couple of months would fall, and if it turned out to be a long-term trend, the Central Bank might reduce restrictive measures. At the same time, he said that the government needed to introduce more restrictive fiscal policies. Jelasic also address criticism from the exporters' camp that the home currency, dinar (RSD), exchange rate against the euro is unrealistic, bringing down their income, by saying that Serbia "has a consistent growth of exports at a 25-30 percent rate per year in euros". "To this day there is a large number of exporters that would gladly make profit off exchange rate differences. It must be asked whether today's top 100 exporters will hold on to their position in the future," he said. Asked whether the central bank, as an institution, has a satisfactory level of independence, Jelasic, a G17 Plus official, said that this was largely down to the NBS leadership, "since it can use relatively poor legislation to after all create an independent central bank, and vice versa". Jelasic is the second NBS head to be appointed to the position twice, repeating the feat of Djordje Vajfert, who was governor in the early 20th century.

Jelašić optimistic about inflation

Jelašić said that the measures taken by the NBS would give the anticipated results.

He said that he was convinced that inflation in the next couple of months would fall, and if it turned out to be a long-term trend, the Central Bank might reduce restrictive measures.

At the same time, he said that the government needed to introduce more restrictive fiscal policies.

Jelašić also address criticism from the exporters' camp that the home currency, dinar (RSD), exchange rate against the euro is unrealistic, bringing down their income, by saying that Serbia "has a consistent growth of exports at a 25-30 percent rate per year in euros".

"To this day there is a large number of exporters that would gladly make profit off exchange rate differences. It must be asked whether today's top 100 exporters will hold on to their position in the future," he said.

Asked whether the central bank, as an institution, has a satisfactory level of independence, Jelašić, a G17 Plus official, said that this was largely down to the NBS leadership, "since it can use relatively poor legislation to after all create an independent central bank, and vice versa".

Jelašić is the second NBS head to be appointed to the position twice, repeating the feat of Đorđe Vajfert, who was governor in the early 20th century.

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