Serbian core inflation, excluding food and regulated prices, is stable, central bank Governor Dejan Soskic said.
The central bank believes it can return inflation to levels that can be considered within the bank’s target by the first quarter of next year and has “never thought” of revising its goals, Soskic told a bank conference today in Belgrade.
The economy may grow as much as 2.5 percent this year if the agricultural sector does well, Soskic said.
The Balkan nation is not excessively indebted but any further increase in public debt shouldn’t exceed the pace of economic growth.
“Otherwise we would risk investor confidence,” he said.
Serbia will “make sure” that the new Eurobond issued last week is used for new calculation of Serbia’s risk premium,’’ which will certainly wipe out part of the risk, he said, referring to the Emerging Market Bond Index.
Source businessweek.com
