Governor in Bečići: Inflation is no Longer a Temporary Phenomenon, but a Long-term Challenge

The Governor of the Central Bank of Bosnia and Herzegovina, Jasmina Selimović, Ph.D., participates in the XII Regional Summit of Governors, Ministers of Finance and Directors of Tax Administrations of the Countries of the Region, which takes place on 13 and 14 June 2025 in Bečići (Montenegro).

This year's theme of the Summit, "Financial and Monetary Stability of the Region in the Conditions of Continued Weak Economic Growth in the Euro Area", has brought together key decision-makers in the fields of monetary and fiscal policies, as well as representatives of international financial institutions.

Governor Selimović pointed out that inflation is no longer a temporary or cyclical phenomenon, but the result of structural changes in the global economy: "In the conditions of geopolitical fragmentation, disruptions in supply chains and energy transitions, inflation is becoming a more permanent challenge. Even with a broader set of monetary instruments, the scope for effective actions is limited," she stressed.

Commenting on the inflation projections for Bosnia and Herzegovina, she stated that a gradual decrease of inflation is forecasted for the period 2025-2027, but with the existing risks for its increase: "With labour shortages, strong wage growth and changes in the minimum wage policy, the ability of the economy to absorb external shocks without significant consequences for price stability is further complicated," Selimović added.

She also stressed the importance of strengthening regional cooperation, especially in the areas of payment system integration and better coordination in crises: "Establishing common standards, such as joining the SEPA area and developing common solutions for cross-border payments, can significantly contribute to the resilience of our economies," she concluded.