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Y-o-y inflation to return to target tolerance band in 2017 - Serbia Business

Y-o-y inflation to return to target tolerance band in 2017

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Year-on-year inflation will see a gradual, albeit slightly slower-than-expected return to the target tolerance band in the first half of next year, National Bank of Serbia (NBS) Governor Jorgovanka Tabakovic said Wednesday.

At the presentation of the August 2016 inflation report, Tabakovic said this month marked four years since she had taken office and that the period was one of lower, more stable inflation.

This is not a result of external impacts, but reduced internal imbalances and a stable exchange rate of the dinar, which has brought down inflation to a level common in European countries, Tabakovic said.

Inflation will remain low over the next two years and the stability of the foreign exchange rate will be maintained, which is significant because a stable dinar is exerting less pressure on import prices, she said.

“Over the past four years, we have demonstrated a capability of maintaining a stable exchange rate and overall stability, which is a result of coordinated monetary and fiscal policies,” Tabakovic said.

Source; SerbGov