Central bank governor discusses inflation

Governor of the National Bank of Serbia NBS Dejan Šoškić says he believes the inflation rate would remain within the planned limits of up to six percent.

Izvor: B92

Tuesday, 05.04.2011.

09:32

Default images

Governor of the National Bank of Serbia NBS Dejan Soskic says he believes the inflation rate would remain within the planned limits of up to six percent. However, he told B92 in Belgrade on Monday, this will happen if Serbia respects the agreement with the International Monetary Fund (IMF) regarding the restraints on public spending growth. Central bank governor discusses inflation Soskic said that if all competent bodies, particularly the Serbian government, respect the agreement with the IMF, and if there are no high rises in the price of oil products, gas and food on the global market, Serbia will manage to knock off the inflation rate considerably in the second semester of 2011. Soskic assessed that inflation rate will start dropping soon, after its ups in February, March and April. Commenting on unofficial estimates according to which inflation rate reached 14 per cent in March 2011 relative to the same month last year, Soskic said that this data will be established with certainty in mid-April when the Statistical Office of the Republic of Serbia releases relevant official information. Speaking about assessments endorsed by certain local analysts who said that NBS can manage to keep the inflation rate within the planned 4.5 per cent plus or minus 1.5 per cent only if there are no price rises for any product or service in the country by the end of the year, Soskic said that deflation is also an option. The NBS governor noted that certain companies used unrealistically high exchange rates when defining prices for this year due to high inflationary expectations and that they should now reduce their prices since the Serbian dinar has been stable for months. Soskic said that the current strengthening of the dinar against euro came as a result of foreign investors' boosted interest in the Serbian market, as well as the country's improved credit rating and the fact that its interest rates are higher than in other country in the region. “I do not expect to see any instability (of the exchange rate) in the next period,” Soskic underscored. Dejan Soskic (Tanjug)

Central bank governor discusses inflation

Šoškić said that if all competent bodies, particularly the Serbian government, respect the agreement with the IMF, and if there are no high rises in the price of oil products, gas and food on the global market, Serbia will manage to knock off the inflation rate considerably in the second semester of 2011.

Šoškić assessed that inflation rate will start dropping soon, after its ups in February, March and April.

Commenting on unofficial estimates according to which inflation rate reached 14 per cent in March 2011 relative to the same month last year, Šoškić said that this data will be established with certainty in mid-April when the Statistical Office of the Republic of Serbia releases relevant official information.

Speaking about assessments endorsed by certain local analysts who said that NBS can manage to keep the inflation rate within the planned 4.5 per cent plus or minus 1.5 per cent only if there are no price rises for any product or service in the country by the end of the year, Šoškić said that deflation is also an option.

The NBS governor noted that certain companies used unrealistically high exchange rates when defining prices for this year due to high inflationary expectations and that they should now reduce their prices since the Serbian dinar has been stable for months.

Šoškić said that the current strengthening of the dinar against euro came as a result of foreign investors' boosted interest in the Serbian market, as well as the country's improved credit rating and the fact that its interest rates are higher than in other country in the region.

“I do not expect to see any instability (of the exchange rate) in the next period,” Šoškić underscored.

Komentari 1

Pogledaj komentare

1 Komentari

Možda vas zanima

Podeli: