In parallel, we have been drafting a decision to be adopted by mid-December to relax in 2009 requirements from some of the NBS regulations (e.g. 30%, 50% and 150% limits). Everybody says that Serbia performs best when backed into a corner. Well, we have been in that position for quite a while and some seem to have realized it only now.
Having recovered after the effects of the Lehman Brothers shock, consumer price inflation averaged 1.6% from September 2008 until the end of 2011. Afterwards, against a backdrop of persistent macroeconomic weakness, inflation began a prolonged downward drift, consistently undershooting our staff projections. From the start of 2014, it became increasingly clear that without our comprehensive response, medium-term price stability was at risk.