FOREIGN INVESTORS COUNCIL 2022/2023
INTERVIEW
JORGOVANKA TABAKOVIĆ, GOVERNOR OF THE NATIONAL BANK OF SERBIA
Safe Haven For The Economy And Citizenry I’m extremely proud of the results we’ve achieved in preserving the exchange rate’s relative stability over the course of the last decade. That has provided our citizens and the economy with certitude, easier planning and more certainty in their business operations. The NBS has become a synonym for a safe haven and stability, an institution that carefully analyses and makes advanced preparations for periods of increased uncertainty
I
n all likelihood, we expect double-digit inflation by the end of this year. That’s why many eyes are turned towards the policy of the National Bank of Serbia. “Central banks use interest rates to impact inflation primarily through channels of demand and expectations, while monetary policy cannot impact on supply side pressures, or can only influence them to a small extent,” says National Bank of Serbia Governor Jorgovanka Tabaković. Our interlocutor also notes that, given that economic activity was still recovering slowly from the pandemic when inflation began to rise in many countries, there was a fear that 22
tightening monetary policy would cause that recovery to slow further. Care is still being taken when it comes to this. Additionally, Tabaković considers, it needs to be kept in mind that monetary policy has a delayed impact on inflation, which makes it important to project future inflation as accurately as possible. “In a situation in which pricing trends are largely determined by the outcome of military conflicts, projections can deviate greatly from expectations, which actually happened during the previous period. We certainly have room to continue raising the reference interest rate if the need arises, but also to use other