Central bank urges Lithuanian govt to take targeted anti-inflationary measures

VILNIUS – The Lithuanian government should put forward a new package of anti-inflationary measures in the fall, but only after assessing the effectiveness of the measures adopted last spring, Gediminas Simkus, board chairman of the central Bank of Lithuania, says.

Also, the stressed the need to maintain fiscal discipline, to avoid further stimulating inflation, and to take new measures aimed at the most vulnerable residents.

"Naturally, (such measures should be introduced – BNS) as inflation is fairly high. But before that, the effectiveness of the previous ones and the need for new ones should be assessed," Simkus told reporters on Friday.

In his opinion, by doing so, Lithuania would not fall out of the European context.

"But our position is very clear: we need to maintain fiscal discipline, new measures should not contribute to inflationary processes, and, most importantly, they should be targeted, they should be aimed at those who need them the most – the most sensitive and vulnerable members of our society – but they should not be wide-ranging," Simkus added.

Later this month, Prime Minister Ingrida Simonyte plans to start discussions with the opposition on the introduction of additional support measures in the fall or next year to help people and businesses survive in the face of extremely high inflation.

During its spring session, the Seimas of Lithuanian revised this year's budget and allocated 1 billion euros to cushion the impact of rising prices on hard-pressed residents. The government raised pensions, other social payouts and non-taxable income, and will also pay gas and electricity compensations for residents.