CNB Council: CNB to continue pursuing expansionary monetary policy

Published: 9/11/2017

The CNB Council today examined recent economic and monetary indicators, adopted the Semi-annual Information on the Financial Condition, the Degree of Price Stability Achieved and the Implementation of Monetary Policy in the First Half of 2017, which is to be submitted to the Croatian Parliament, and adopted several decisions on matters falling within its competence.

Economic trends remained positive in the third quarter of 2017 and available data point to an acceleration in real growth. However, labour market developments were less favourable. Consumer prices grew by 1.5% in September from August, primarily due to the seasonal growth of clothing and footwear prices as well as to the growth of electricity prices, stemming from an increase tariffs on renewable energy sources. The annual inflation rate rose from 1.0% in August to 1.4% in September, with all major CPI components contributing to the rise and energy prices making the largest contribution. The CNB continued pursing its expansionary monetary policy, supporting it since September by the pooling collateral management system for all CNB's credit operations. Household lending grew further in September, with kuna lending up at an especially high rate, whereas corporate lending decelerated annually. The net external debt of domestic sectors decreased considerably in July and August, predominantly due to a continuing improvement in the external position of credit institutions. The general government budget recorded a surplus in the second quarter, although slightly lower than in the same period in 2016, and Ministry of Finance cash data suggest that favourable trends will continue at the beginning of the third quarter.

The CNB Council today also adopted the Decision on the setting and publishing of Croatian National Bank selling prices for commemorative gold and silver coin issues and numismatic sets. The Decision provides for listing the prices of all commemorative gold and silver coin issues and numismatic sets in one document, i.e. the price list that is to be issued by the CNB Governor.

The CNB Council also approved the decisions of several credit institutions' supervisory boards on appointments and reappointments to these institutions' management boards. Denis Čivgin is reappointed as Chairman and Hrvoje Glogolja as Member of the Management Board of Imex banka d.d., Split; Zorislav Vidović is reappointed as Member of the Management Board of OTP banka d.d., Zadar; Dajana Kobeščak is appointed as Chairwoman and Kitica Mioč as Member of the Management Board of Veneto banka d.d., Zagreb. Raiffeisen stambena štedionica d.d., Zagreb was granted approval to appoint Tomislav Matić as Chairman of the Management Board.