Decision making process in the National Bank of Serbia

Monetary policy decisions are made by the NBS Executive Board, consisting of the Governor and Vice-Governors. The Executive Board takes decisions in its meetings by the majority of votes cast. In the event of a tie, the deciding vote is that of the Governor.

The Executive Board’s decisions on the key policy rate are based on macroeconomic analyses, the inflation projection and an analysis of the deviation of actual from projected inflation. The 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 Executive Board meetings

The rate-setting meeting of the Executive Board is held on the first working Thursday after the 6^th of a month, and the press release about the outcome of the meeting is published on the NBS website at 12 noo. The press release explains the reasons behind the Executive Board’s decision.

After Executive Board meetings in which macroeconomic projections and the Inflation Report (February, May, August and November) are considered, a press conference is held in order to present to the public current macroeconomic trends and forecasts for inflation, GDP and other key macroeconomic indicators, as well as the risks to their achievement. The NBS monetary policy and the rationale behind concrete Executive Board decisions are also explained. The press conference is livestreamed on the NBS website, while the Inflation Report and the presentation materials are published on the same day on the NBS website. Public access to this information enables better understanding of the monetary policy pursued and of the central bank’s determination in achieving its main statutory objectives, and hence in anchoring inflation expectations.