National Bank of Serbia
May 16, 2013
Serbian monetary officials on May 14 cut the one-week repo rate by 50 basis points to 11.25%. This reduction reverses policy gears, following a string of eight hikes between June 2012 and February 2013 totaling 225 bps. The backdrop for those earlier increases was a sharp acceleration of inflation from less than 3% to more than 12% earlier this year and still above 10%. A statement from the Executive Board explaining the rate cut express confidence that the 2.5-5.5% inflation target could be met by yearend. Officials projected 2% export-led growth in 2013. This week’s rate cut was the first in Serbia since January 2012.
Copyright 2013, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: National Bank of Serbia
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