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Arhar Predicts Tougher Monetary Policy

The short-run aim of the Bank of Slovenia monetary policy for the year 2000 is an annual growth of the M3 monetary aggregate by 12 to 18 percent. The Bank of Slovenia will attempt to create all the conditions required for the stability of currency as can be made from government inflation predictions for the year 2000. If, however, during the course of the year there will be a significant deviation from predictions, mainly due to increased movements in financial channels from foreign and local markets, the central bank will have to toughen up its monetary policy, said Governor France Arhar.

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