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Kuna exchange rate stable, inflation slightly higher than expected - HNB

ZAGREB, Sept 14 (Hina) - The Croatian National Bank (HNB) Council meton Wednesday for a regular session under the chairmanship of HNBgovernor Zeljko Rohatinski, at which it discussed the latest economicand monetary developments, a report on the management of foreignexchange reserves in the first half of this year and the situation inthe banking system in the second quarter, the HNB said in astatement.
ZAGREB, Sept 14 (Hina) - The Croatian National Bank (HNB) Council met on Wednesday for a regular session under the chairmanship of HNB governor Zeljko Rohatinski, at which it discussed the latest economic and monetary developments, a report on the management of foreign exchange reserves in the first half of this year and the situation in the banking system in the second quarter, the HNB said in a statement.

Economic activity indicators point to a more dynamic growth in recent months - industrial production has been on the rise, particularly in processing industries, real retail trade has been growing as well, the number of tourists in the first seven months was significantly higher than last year, and the construction industry too has been recovering.

Retail prices in the first seven months increased by 3.1 percent in relation to the same period last year, which is slightly higher than expected.

The kuna exchange rate continues to be stable, and the central bank made no interventions on the foreign exchange market in June, July and August.

Increased seasonal kuna demand was met exclusively through open market operations.

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