next spring develop warrants particular attention. corporate profits have been at a level close to record highs, and labor market conditions have tightened, as evidenced by the fact that the unemployment rate has declined to around 3 percent. under these circumstances, the environment for wage increases is certainly well established. the fourth point is that, as the bank pursues powerful monetary easing under its " inflation - overshooting commitment, " inflation expectations will likely rise. i will elaborate on this later. in this manner, it is the bank's assessment that, despite the recent weakness in price developments, the momentum toward achieving the price stability target of 2 percent seems to be maintained. however, risks to both economic activity and prices are skewed to the downside, particularly those regarding overseas factors. moreover, the projections for prices in the october 2016 outlook report have been revised slightly downward compared with those in july, and the timing of the year - on - year rate of change in the cpi reaching around 2 percent will likely be around fiscal 2018. the momentum toward achieving the 2 percent target is somewhat weaker than the previous outlook, and thus developments in prices warrant careful attention going forward. the major reason behind these downward revisions lies in developments in medium - to long - term inflation expectations. let me now move on to this point. ii. inflation expectations and the conduct of monetary policy to put it simply, inflation expectations are people's outlook for prices, or their perception of future price developments. in a situation where the price stability target of 2 percent is achieved in a stable manner, people will share the view that annual inflation will be around 2 percent, and such view will be a key determinant of prices of goods and services, as well as wages. with the aim of dramatically changing the deflationary mindset that had been entrenched among people and raising inflation expectations to 2 percent, the bank - - under qqe introduced in april 2013 - - has strongly and clearly committed itself to achieving the price stability target and conducted large - scale monetary expansion to underpin this commitment. after the introduction of qqe, inflation expectations increased significantly through around summer 2014 ( chart 8 ). this clearly shows that monetary policy is effective in raising inflation expectations. thereafter, however, with headwinds such as a significant decline in crude oil prices, weak demand following the consumption tax hike, and volatility in global financial markets reflecting the slowdown in emerging economies, inflation expectations resumed their decline from summer 2015

radovan jelasic : the national bank of serbia – accomplishing its objectives speech by mr radovan jelasic, governor of the national bank of serbia, on the occasion of consecration of the new office building of the national bank of serbia, belgrade, 10 october 2006. * * * your eminences, reverend bishops, esteemed guests and dear colleagues, it is an honour for me to share with you all the joy of this historical moment of consecration of the new office building of the national bank of serbia. i hope that this will also mark a peaceful and blessed start of work in this beautiful building, after rather tumultuous two decades. i believe that this festive atmosphere may be a good time to remind ourselves once again of what our legal obligation to serbian citizens is, with regard to preserving the stability of the national currency and building an efficient financial system. the construction of this building began in the former yugoslavia, and was completed in today ’ s serbia. no one believed it was possible to finish such building and put it into use in a short time. and yet, we did it. in only three years, we renovated and completed the work which had remained unfinished during the previous fifteen or so years. this is yet another proof that the national bank of serbia always accomplishes the objectives it sets. similarly, our claim that we will succeed in transforming a completely ruined banking system into a sound and financially strong one, in which ownership has been transformed and which both citizens and economy will trust, was greeted by the same sort of disbelief. today, new foreign currency savings in banks amount to more than eur 3 billion, and in only eight months this year the sum of credits increased by around csd 100 billion. serbia ’ s strength today is perhaps best illustrated by the fact that this year ’ s foreign direct investments amounted to almost usd 4 billion, bringing us a strong dinar, which many of our fellow citizens still view with distrust, even after all this time. a similar thing happened when the national bank of serbia was entrusted with insurance supervision and when it confirmed in practice that, just like in the banking sector, it will ensure the enactment of the necessary regulatory framework, control of participants in the insurance market, supervision of their operations, consumer protection and conditions for stable development of this sector. six months ago, when monthly inflation stood at over 1. 5 % and the national bank of serbia, despite this, asserted that it was possible for this year ’