New governor faces uncomfortable questions about inflation

Ante Žigman is poised to take the helm as the new governor of the Croatian National Bank (HNB) in early June, succeeding Boris Vujčić who is moving to a vice-presidency role at the European Central Bank.

Žigman, who previously led the Croatian Agency for Supervision of Financial Services (Hanfa) since 2018, will return to the HNB, where he previously held a position before his appointment to Hanfa. His nomination was reportedly secured with the support of the ruling HDZ parliamentary majority and awaits formal confirmation by the Croatian Parliament.

The timing of Žigman's appointment is significant, occurring during a period of elevated inflation and growing concerns among economists regarding the HNB's limited influence within the Eurozone. This context suggests that the new governor will likely face difficult questions about inflation and its impact on the cost of living, which has been partially mitigated by wage increases.

Boris Vujčić's departure to the European Central Bank marks the end of his tenure at the HNB. The transition to Žigman signals a new chapter for Croatia's central bank as it navigates ongoing economic challenges, particularly concerning price stability and the bank's role within the broader European monetary system.