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HNB REPORTS ON LOW INFLATION AND STABLE EXCHANGE RATE

ZAGREB, Sept 11 (Hina) - The Croatian National Bank (HNB) on Wednesday discussed the latest economic and fiscal movements, a report on managing international reserves in the first half of this year, approved the founding of a new savings bank and approved the appointment of fifteen members and presidents of boards in banks, the HNB reported.
ZAGREB, Sept 11 (Hina) - The Croatian National Bank (HNB) on Wednesday discussed the latest economic and fiscal movements, a report on managing international reserves in the first half of this year, approved the founding of a new savings bank and approved the appointment of fifteen members and presidents of boards in banks, the HNB reported. #L# Available macro-economic indicators show that prices and the exchange rate are stable. Retail prices in August were 0.1 per cent lower than in July and 1.2 per cent higher than in the same period last year. Considering the latest price increases of some utility services and power supply it can be expected that the total inflation rate for the year will remain quite low. The key precondition to realise this expectation is for oil prices on the world market not to jump drastically. This year there was no need for the usual seasonal interventions by the central bank on the foreign exchange market in order to relieve exchange rate oscillations: in July there was none and in August only one intervention with the purchase 47.2 million euros while last month there were no interventions. As expected, the banking system is showing a continuing growth in deposits. The liquidity of the banking system is good. Privredna Bank d.d. Zagreb was approved to establish the PBZ Savings bank. Unicredito Italiana SpA was given approval to gain 80 percent of the shares in Cassa di Risparmio di Trieste - Banca d.d. Zagreb which until now was indirectly owned by the same banking group. (hina) sp it ha

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