The Croatian National Bank Council met today to analyse recent economic and monetary indicators and adopt a Monetary policy projection for the period between 2016 and 2019.
In the second quarter of 2016 the economy grew at a pace similar to that at the beginning of the year, with real GDP up at a much higher than expected annual rate of 2.8%. As the available data for the third quarter signal further GDP growth, primarily due to good tourist season results, it could increase in real terms at a higher annual rate than projected in July. Employment rose further and unemployment continued to drop. The fiscal deficit was significantly reduced as a result of favourable revenue developments. Domestic inflation remained negative amid low energy products and other commodities prices and subdued inflation in the euro area. Under such conditions, the CNB continued to pursue an expansionary monetary policy, while maintaining exchange rate stability, thus further improving domestic financing conditions and slowing down the deleveraging of non-financial corporations and households. CNB's structural repo operations led to an increase in bank lending to private companies and a strong growth in kuna lending to all domestic sectors.< p/>
The Council also adopted the Plan for issuing commemorative coins and numismatic coin sets for 2017.