The establishment of the SSM implies that for many foreign-owned banks operating in Serbia, the ECB will become the “home” supervisor and they will no longer be supervised by different national supervisors depending on where they have their headquarters.
With growth in demand stalled, supply will catch up and the economy will move from excess demand to modest excess supply. This will relieve inflationary pressures. We have already seen inflation in goods prices begin to fall, and we expect this to continue in the months ahead.