Third Large Serbian Rate Cut of 2009
April 22, 2009
The National Bank of Serbia today implemented a cut in the two-week repo rate to 14% from 15%. Reductions of 125 basis points and 150 basis points had earlier been announced on January 22 and April 6, bringing the year-to-date drop to 375 basis points. Inflation of 9.4% is now within the central bank’s target borders, and real growth has declined to 2.8% on year. With inflation trending lower and the key central bank rate still above the growth of nominal GDP, more reductions are likely in the not-too-distant future.
Copyright 2009 Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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