example, were for years prepared only as a matter of form, while today we invest joint efforts into producing quality documents useful both for insurance undertakings themselves, helping them in their business organisation and also serving their supervisor to keep track of the defined business models and objectives. the dissemination of information to insurance policy holders is a new obligation, which insurance undertakings continue to perceive with certain resistance, but luckily this is rarer and rarer, as acting jointly we understand the importance of the issue and how much it contributes not only to better consumer protection but also to rising quality and credibility of insurance industry. additional costs of pre - contractual information, which many market participants tried to avoid, must in fact be perceived as investment in consumers, whose personal satisfaction will make them more loyal in the future, and that is the most important resource of any business entity in the contemporary environment. 2 / 5 bis central bankers'speeches the nbs on - site supervisions are more efficient today, with very clearly defined objectives and outcomes. special attention is devoted to the sale of insurance, as we believe it is the reflection of this industry in front of citizens. that is why any form of unauthorised operation, false presentation or non - adjusting of insurance products to the real consumer needs must not be allowed. only sound growth based on a satisfied consumer is desirable. the principle of voluntary insurance, apart from exceptional cases defined by the state, is guaranteed. no one has the right to breach these principles for the sake of quick profit, as such breach would jeopardise the reputation of the entire industry. in that sense we endorse actions of the association of serbian insurers, but we also expect them to be more intensified in the future. insurance promotion, by means of pointing to the benefits for citizens, is the right path for the development of this industry. also, internal mechanisms of the professional association may deter all those who breach the proclaimed values. the supervisor ’ s objective is not insurance promotion nor is it our intention to delve in it. however, everything which makes the industry, with appropriate and noble motives, will receive our support. the sales method is a crucial element in life insurance development as it is a kind of substitute to long - term savings, while in case of property insurance one needs to pay special attention to compensation claims, which, in fact, are the best promotion before the citizens. naturally, we must never forget about the injured parties who, without the status of insured

sors and consumer prices ( % ) nbs calculation. 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1 source : gallup, ipsos / ninamedia, bloomberg and nbs. * ipsos and gallup agencies until december 2014, ninamedia agency since december 2014, and ipsos agency since january 2018. after reaching this year ’ s low in april, we expect inflation to gradually approach the target in the coming period, though this year it will remain close to the lower bound of the target tolerance band. we expect inflation to approach the 3. 0 % midpoint in the second half of 2019, and to remain stable around that level until the end of the projection horizon. in view of this, we expect inflation to remain low and stable in the coming period as well. in other words, in the medium term, year - on - year inflation will move within the target tolerance band ( 3. 0 % ±1. 5 % ) until the end of the projection horizon, i. e. in the next two years, also owing to a gradual recovery in domestic demand. medium - term inflation expectations of the financial and corporate sectors are also anchored at the target midpoint of the national bank of serbia. * * * monetary policy easing amid low inflationary pressures helps speed up lending and economic activity, which, along with the efforts to resolve non - performing loans, made the share of these loans fall below the pre - crisis level. by carefully monitoring and analysing the developments in the domestic and international environment, we assessed that the expected movement in inflation and its underlying factors going forward, along with the further strengthening of macroeconomic fundamentals, allow for additional monetary policy easing. accordingly, we decided to further cut the key policy rate in both march and april by 25 basis points to 3 %, its lowest level in the inflation targeting regime. its sharp drop in the period since the monetary easing cycle began ( may 2013 ) had a strong impact on the rise in disposable income, thus contributing to a faster recovery of domestic demand. we made the decisions on further monetary policy easing taking into consideration not only that the february medium - term inflation projection was lower than the previous one, both for this and next year, but also that inflationary pressures weakened further after the february projection. on the other hand, monetary policy caution was mandated by pronounced uncertainty in the international commodity market, mainly regarding the movements in oil prices