In 2012 inflation was significantly lower than in 2011 (figure 1). The annual average inflation was 5.0%, while the 12-month figure dropped from 15.3% at end 2011 to 4.4 % at end 2012. Early last year, the Central Bank had announced a policy target of between 5% and 6%, which has thus been achieved. The policy anchor is maintained at 5% or less for 2013.

Bron: Algemeen Bureau voor de Statistiek

The Central Bank reports that both the Bank and the Ministry of Finance have expressed a commitment to low-inflation policies. In the first place, central bank financing of a possible budget deficit should be contained. Furthermore, efforts to reduce pressure on prices will be discussed with the social partners, notes the mother bank. It goes on to say that historically the Bank has had only a few monetary instruments at its disposal; such as currently, the cash reserves ratio. The bank therefore plans to introduce more instruments such as open market operations and a modern interbank lending facility in the near future.