Central Bank of Bosnia and Herzegovina outlines inflation outlook, EIB climate-risk assistance and SEPA accession timeline

The Central Bank of Bosnia and Herzegovina’s Governor Jasmina Selimovic used a Financial Times Forum panel in Vienna to set out the central bank’s view of current macro-financial issues, including interest-rate transmission under the currency board arrangement and the inflation outlook. She said inflation in Bosnia and Herzegovina was 4.0% in 2025 and that CBBH projections point to a slowdown to below 3% in 2026. Selimovic noted that domestic interest rates are formed through the pass-through of external financial conditions and argued that strong liquidity and a stable banking sector helped avoid greater volatility during the period of global monetary tightening. On sustainable finance, she said green finance development is being held back and requires reactivation measures, while stable liquidity and reduced uncertainty can facilitate long-term financing for renewable energy, energy efficiency and climate-resilience projects. To support the integration of climate-related risks into the financial system, she said the CBBH has contracted a major technical assistance programme with the European Investment Bank and will coordinate activities among relevant institutions. On payments integration, she said Bosnia and Herzegovina submitted a SEPA pre-application in December 2025 and expects to file a formal application in the first quarter of 2026, citing the adoption of necessary laws by both Entities’ governments. On digital currencies, she said the CBBH is taking a cautious, analytical approach and is monitoring European and international initiatives.