requires central banks, especially in Asian EMEs to intervene the foreign exchange market to stabilize exchange rates. Looking ahead, the US dollar is predicted to continue to strengthen in line with the hike in the FFR, and therefore it is necessary to continue to be vigilant and strengthen the policy response to mitigate the spillover impact on stability and to the domestic economy.
In my introductory address I will touch on the key macroeconomic conditions in which monetary policy was implemented and on the decisions the National Bank of Serbia has made in the period since our previous Report.