Croatian National Bank convenes regional governors in Osijek to discuss inflation, payments modernisation and the digital euro

The Croatian National Bank hosted a Regional Governors’ Meeting in Osijek, bringing together regional central bank governors for a panel on “Inflation and Payment Technologies in a Rapidly Changing World” and a keynote address by European Central Bank Executive Board member Piero Cipollone on enhancing cross-border payments in Europe and beyond. The discussions covered the inflation outlook, development of efficient and safe payment systems in the European Union, and the rationale and benefits of the digital euro project. Croatian National Bank Governor Boris Vujčić said inflation has gradually decreased in most countries since the end of 2022 as supply-side shocks eased and restrictive monetary policy fed through, and expects a temporary increase in late 2024 and early 2025 to be followed by inflation converging toward the 2% target. He identified upside risks to inflation in Croatia including labour shortages, slow productivity growth, volatile energy and raw-material prices, and potential new trade costs and barriers linked to rising geopolitical insecurity. On payments, he argued that modernising regional payment infrastructure and adopting EU standards such as SEPA and instant payments could reduce costs and support economic integration with the EU, while the digital euro would further improve the safety and efficiency of payments across the EU and the Eurosystem.