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15/09/2017

The Council of the Central Bank of Montenegro held the fifteenth session today, chaired by the Governor, Mr Radoje Žugić, PhD.

At today's session, the Council considered and adopted the Analysis of Financial Statements of the Central Bank of Montenegro for the Period January - August 2017. According to the analysis data, total revenues in the first eight months of this year are higher by 8.2% compared to the plan or by 4.8% compared to the same period last year. In the same observed period, expenditures were lower by 10.2% compared to the plan, while their amount remained at the same level as in the first eight months of the last year, despite the higher execution of expenditures on the basis of the negative interest rate on assets invested with foreign banks. The total operating costs from January to August 2017 were 11% lower than planned, of which the staff costs were lower by 4.5% of the planned ones. The greatest savings were made in the business travel expenses, as well as operating and other business expenses, those including telecommunications services costs, representations, conferences and seminars, etc. Members of the Council expressed satisfaction with these results, with the expectation that the positive trends that characterize CBCG's operations will continue until the end of the current year.

In the Inflation Report for the second quarter 2017, indicators, expectations and determinants of inflation in Montenegro were analysed. It was noted that consumer prices in the second quarter of 2017 remained unchanged compared to the previous quarter. Observing price developments on a monthly basis, consumer price growth was recorded in April and May (by 0.1%), while the decline (-0.1%) was registered in June. On an annual basis, consumer prices increased by 2.1% in June. When it comes to inflationary expectations of banks, according to a survey conducted in July this year, the largest number of banks surveyed expects inflation to be between 2% and 2.5% by the year end. According to the results of the survey, the corporate sector also expects inflation in this range. According to an expert survey conducted by the CBCG, inflation in 2017 will range from 1% to 3%, with a central projection of 2%.

The Council adopted the Decision on the Appointment of an Internationally Recognized Independent External Auditor, which will audit the CBCG annual financial report for 2017.

The Council also discussed other current issues from the domain of its competence at today's session.