National Bank of Serbia’s Key Interest Rate Left at 4.0%
October 13, 2016
Serbian inflation continues to run below the 2-4% inflation target band, but officials expect a rise above the target floor by the middle of next year according to a short statement released after the latest monetary policy meeting. The current 4.0% central bank rate is only half as high as its level at the start of 2015. 350 basis points of rate reduction were engineered last year, and that relief was augmented by further reductions of 25 basis points each in February and July of 2016. The statement observes low agricultural prices and a high level of general uncertainty surrounding the outlook, but officials also stress that Serbia economy has become more resilient due to fiscal consolidation, structural reform and a reduced balance of payments deficit.
Copyright 2016, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: National Bank of Serbia
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