21 10'21 1'22 4'22 7'22 source : nbs. a further build - up of cost - push pressures and higher than expected imported inflation influenced our decision to continue to moderately tighten monetary conditions at home in order to contain the second - round effects on inflation expectations and ensure that inflation returns within the target tolerance band until the end of the projection horizon. in the period since the previous report, the nbs key policy rate was adjusted by 50 bp in june, and by 25 bp in july and august each. it currently stands at 3 %. as i have already highlighted, when making monetary policy decisions we had in mind that the rise in domestic inflation is led primarily by supply - side and not by demand - side factors, and that the full effects of the earlier adopted measures of monetary tightening are yet to materialise. we also tried to ensure the so - called soft landing, i. e. financing conditions that will ensure the continuity of economic growth and a reduction in unemployment. this is supported by the fact that even amid moderate tightening of monetary conditions lending remained an important factor of working capital, investment and consumption financing. this was aided by the continued rise in loan demand, preserved bank asset quality and stable sources of funding. the y - o - y rate of growth in domestic loans to non - monetary sector accelerated further in june relative to march. it came at 13. 1 % and the contribution of corporate remained higher than that of household loans. in june, the share of npls in total loans dropped to a new lowest level so far ( 3. 26 % ), indicating that bank asset quality has not deteriorated after the termination of measures of government economic assistance and that it is no barrier to continued lending growth. chart 8 lending activity to the non - monetary sector chart 9 npl share in total loans, gross principle ( y - o - y growth rates in %, excluding the exchange rate effect ) ( in rsd bn ) ( in % ) - 5 enterprises households total - 10 - 15 source : nbs. source : nbs. household sector corporate sector other sectors npl share in total loans ( rhs ) june after a relatively sharp increase in q1, which equalled 4. 4 % y - o - y, according to sors estimate, a similar pace of gdp growth ( 4 % ) continued in q2, which is above our may expectations. on the production side, growth was mainly driven by the pick - up in services

a rate of economic growth that permits a sufficient income transfer from the working population to pensioners which does not cause the “ inter - generational contract ” to collapse under its own weight? looked at from the perspective of monetary policy, the questions are more specialised, but just as fundamental. first, i ask myself whether the aging process in society is bound to change the indicators for central bank policy. second, we need to consider whether the economic consequences of the aging process will also have direct or indirect implications for the monetary transmission process. and third, you could even ask whether the shifts in the age structure are at all relevant for the central banks ’ objectives. let me illustrate the first complex, namely the indicators, using the example of monetary policy in the eurosystem. as you know, the european central bank follows a two - pillar strategy. under the first pillar it defines a reference value for monetary growth. the comparison between actual monetary growth and the reference value is a key guide to assessing the medium - term outlook for price risks. the reference value for monetary expansion is derived from the trend rate of real gdp, the trend in the velocity of money and an inflation rate that appears acceptable under stability considerations. other things being equal, if the working population grows more slowly or declines, this will eventually dampen potential output. however, an increasing amount of savings and a larger capital stock could counteract the effects of a shortage of labour. countervailing effects could also be generated by technical progress. on the one hand, a shortage of labour may stimulate technical progress. on the other hand, the aging population may constitute an obstacle to technical progress. at any rate, my children certainly surf the internet a lot more skilfully than their aging father! i would add that the velocity of money may likewise be affected by the consequences of the aging process. thus both inside and outside europe wealth has been found to affect money demand, or the velocity of money. if the aging of a society leads to more capital - intensive production and to increased asset accumulation, the relationship between wealth and income should also change, and this in turn might have an impact on the trend rate of the velocity of money. concerning the ecb ’ s analysis of the second pillar, i would like first to draw your attention to labour market conditions. the impact of a changing age structure on the labour market has been debated very intensively in the united states. however, the institutional conditions in the usa are very different from those in