Serbia’s Central Bank Rate Cut 25 Basis points Further
June 11, 2020
The National Bank of Serbia Executive Board reduced its policy interest rate to a 9-year low of 1.25% from 1.50%. This easing follows cuts of 50 basis points in March and 25 bps in April. In a statement, officials believe that April marked the worst month for its economy and cite ” an environment of low and stable inflation which continued to slow in April to 0.6% y-o-y, consistent with NBS expectations.” The statement goes on to express a widespread hope in Europe:
The effects of the pandemic on the Serbian economy will be significantly mitigated with the additional key policy rate cut, together with earlier adopted monetary and fiscal policy measures. It is almost certain that the strongest effects of the crisis were felt in Serbia in April, as was the case with most other European countries, while the months to come will experience recovery, supported by the undertaken measures. This will lead to GDP growth of at least 6% in 2021, without prejudice to price and financial stability.
Copyright 2020, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: National Bank of Serbia
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