Central bank chief: Cautious monetary policy

Central bank chief: Cautious monetary policy

"By maintaining low, stable inflation and a stable exchange rate we will strive for particular attention to be devoted to creating conditions for other economic policies to achieve success," Tabaković said at the three-day 2014 Kopaonik Business Forum.

The NBS is counting on the success of all other economic factors, she said, urging a joint contribution to a speedier development of the national economy, a rise of the citizens' living standard as well as lower unemployment and stronger prospects for the Serbian economy as a whole.

Unconventional measures by major industrialized countries aimed at alleviating the consequences of the global economic crisis have been relatively successful, also bringing about a considerable influx of capital into developing countries such as Serbia, Tabaković said.

Serbia's integration into the global financial flows has made the country very sensitive to the behavior of foreign investors, she added.

"For this reason, all central banks like ours must pursue their economic policies with great caution and in keeping with the recovery of the global economy as a whole, which is still slow and uncertain", the NBS governor said.

The monetary policy must be pursued even during the electoral campaign, and if we all do our jobs well, success will be inevitable, Tabaković said.

In Serbia's highly "euroized" economy, the NBS has focused on maintaining the stability of the dinar, whose excessive daily rises or falls may destabilize the national economy, she recalled.

The issue of taking adequate economic measures remains open due to a spillover effect resulting from measures taken by the world's largest economies, Tabaković noted.