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Monetary Policy | Decision Making Process in the National Bank of Serbia

Decision Making Process in the National Bank of Serbia

Decisions on monetary policy are taken by the National Bank of Serbia’s Executive Board, consisting of the Governor, Vice-Governors and Director of the Administration for Supervision of Financial Institutions. The Executive Board takes decisions in its meetings by majority of votes cast. In the event of a tie, the deciding vote is that of the Governor.

NBS Executive Board:

  • Jorgovanka Tabaković, Governor
  • Veselin Pješčić, Vice-Governor
  • Diana Dragutinović, Vice-Governor

The Executive Board’s decisions on the key policy rate are based on macroeconomic analyses, inflation projection and an analysis of the deviation of actual from projected inflation. Inflation projection is made on a quarterly basis and published as an integral part of the Inflation Report (in February, May, August and November). The key policy rate is adjusted in line with economic conditions and inflation outlook so as to contribute to keeping inflation within the projected range.

Tentative calendar of meetings and Communication plan regarding announcement of the decisions on the key policy rate

The rate-setting meeting of the Executive Board is held on the first working Thursday after 5th of a month, and the press release about the outcome of the meeting is published on the National Bank of Serbia’s website at 12 noon. Both the calendar of Executive Board meetings and the plan of communication with the media are posted on the National Bank of Serbia’s website.

In the week when the rate-setting meeting is held, members of the Executive Board refrain from meetings with investors or communication with the media. If the NBS Governor holds a press conference following the Executive Board meeting, the principle of restricted communication with the media applies until that moment.

In this way, the NBS has adopted the practice of most central banks in Europe and the world, while at the same time minimising the possibility of Executive Board members’ statements being interpreted as attitudes that determine the outcome of voting at the rate-setting meetings. The new rules reflect the National Bank of Serbia’s commitment to achieving its principal objective of maintaining price stability, as well as to attaining full transparency in the decision-making process and enabling equal access to information for all players in the financial market.

Executive Board meeting