09.09.2022. / 16:25
SARAJEVO – The European Central Bank (ECB) will raise interest rates by 0.75 percent as a measure in the fight against inflation, which is close to 10 percent in the Eurozone, and this will be the largest single increase so far.
However, the director of the Association of Banks of Bosnia and Herzegovina, Berislav Kutle, believes that citizens have no reason to worry when it comes to raising interest rates.
“There will be an increase in interest rates in certain banks, but nothing particularly worrisome. The ECB’s move is expected, they are looking for ways to bring inflation down to two percent. Raising interest rates is one way. A much bigger problem for the population in BiH is the fact that there is no interest on deposits, funds of physical and legal persons deposited in banks. Thus, they are left without a significant amount of money in a situation where inflation has exceeded 17 percent.”says Kutle for Faktor.
There is another problem on the financial map of the world, the consequences of which are also felt in Bosnia and Herzegovina.
“The weakening of the euro against the US dollar concerns us as well. As we know, the convertible mark is directly linked to the euro. If the euro loses its value, so does the KM. This situation will continue because the United States of America has been working for months to strengthen the dollar and weaken the euro, which is a kind of economic attack on the two financially strongest countries of the EU, Germany and France., Kutle said. Factor
Source: Capital.ba – Informacija je capital by www.capital.ba.
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