Serbia’s inflation rate will rise to 9% by the end of this year, local media reported, citing the NBS governor Radovan Jelasic. The inflation for the next year is expected at 6.0% with a variation band of two percentage points on either side provided government-controlled prices will grow by 11% with the same variation band. The bank and the government have agreed to target an inflation rate between 4% and 8% for 2010, with a 9%-13% target band for state regulated prices. Jelasic added that he doesn’t think the country will need to draw the entire € 3bn loan from the International Monetary Fund (IMF) as the current deficit in the country's balance of payments will be halved, from 17.4% in 2008 to 8% to 9% of GDP in 2009.