In the first quarter of this year Serbia recorded a current account surplus (of close to EUR 160 mn) as a result of the improvement of all current account components, mostly trade, with exports rising 16.6% and imports declining 0.2%, y-o-y.
But monetary accommodation is still needed for inflation to stabilise at our two per cent inflation target over the medium term. In view of the current uncertainty, we need to maintain flexibility and optionality in the conduct of monetary policy.