Having increased by 30% in 2019, dinar savings are now five times higher than in 2012 when we started implementing the Dinarisation Strategy. At end-2019, dinar savings stood at RSD 79.6 bn, while the latest data point to almost RSD 83 bn.
Rule-based policymaking would require the FOMC to indicate how it plans to adjust policy to a more normal stance. The Committee could decide to simply follow the prescriptions offered by the reaction function. Or instead, the Committee might decide that normalization will be delayed with a more gradual adjustment of rates relative to the prescriptions of the reaction function.