National Bank of Serbia
Varying Central Bank Interest Rate Changes to Tackle Inflation
October 6, 2022
The global environment of high inflation, slower economic growth, and central banks raising interest rates has favored the dollar. The weighted DXY dollar index climbed 0.4% overnight. Although the poorly received plan to eliminate the highest British tax bracket has been withdrawn, British financial markets remain especially vulnerable. Sterling is 0.5% weaker today against the […] More
Serbian Central Bank Rate Hike was the Sixth in a Row
September 8, 2022
Serbia’s central bank interest rate was increased today to 3.5% from 3.0%. The 50-basis point move matches the size of increases undertaken in each month of the second quarter, but analysts were expecting the move to be the same size as ones of 25 basis points in July and August. Serbian CPI inflation accelerated to […] More
Concern about European Economic Outlook Mounting
September 8, 2022
The record 75 basis point increase in European Central Bank interest rates failed to lift the euro, which continues to trade below dollar parity. Europe’s economy is more exposed than others to Russia’s invasion of Ukraine. Britain’s new prime minister, Liz Truss, has imposed an emergency freeze on gas and electricity rates. The weighted dollar […] More
Serbia’s Fifth Straight Central Bank Interest Rate Hike
August 11, 2022
The National Bank of Serbia today agreed to raise its policy rate by 25 basis points to a 3-year high of 3.0%. The move follows four earlier consecutive increases of 50 basis in April, May and June followed by a 25-basis point increase in July. Serbian CPI inflation climbed to a 9-year high of 11.9% […] More
Second Serbian Central Bank Rate Hike
May 12, 2022
The National Bank of Serbia, which in April authorized its first interest rate hike in over ten years, just matched the 50-basis point size of that initial increase. A noted above, Serbian CPI inflation has accelerated more than threefold over the past year to 9.6% and is well above target. The new central bank interest […] More
Intensifying Global Risk Aversion
May 12, 2022
Equities hit an air pocket on Thursday in the Pacific Rim and Europe, closing down 2.2% in Taiwan and Hong Kong, 3.2% lower in Indonesia, and off 1.8% in Japan and Australia, 2.1% in India, 1.6% in South Korea and 1.9% in Singapore. Share price declines of 2.0% or more have so far occurred in […] More
50-Basis Point Interest Rate Hike in Serbia
April 7, 2022
The National Bank of Serbia became the latest monetary authority to tighten its stance, raising its policy interest rate by a half percentage point to 1.50%. Such had been at 1.0% since a 25-basis point cut in December 2020 that culminated 125 basis points of reduction during the first year of the pandemic. Officials reacted […] More
Global Demand Starting to Be Constrained by Inflation and Tighter Monetary Policies
April 7, 2022
This week’s equity sell-off extended into Asian markets overnight. European losses, in contrast, have been reversed partly, and U.S. stock futures are little changed. Equities dropped between 1% and 2% in Taiwan, Japan, China, Hong Kong, and India but have rebounded so far by 1.3% in Spain and Italy, 0.9% in France, and 0.7% in […] More
ECB Surprise, a Diplomatic Failure, and Many Price Data Releases
March 10, 2022
In light of risks posed by Russia’s invasion of Ukraine, today’s European Central Bank policy review was not expected to push ahead with its QE exiting strategy, but in fact the pace of the phase-out of asset purchase program bond buying was stepped up: EUR 40 billion will be bought next month, then EUR 30 […] More
Several Central Banks Left Rates Steady, But Fresh Price Data Fan Concern
February 10, 2022
The Reserve Bank of India‘s repo and reverse repo rates were left unchanged at 4.0% and 3.35%. A released statement explains, “The MPC notes that inflation is likely to moderate in H1:2022-23 and move closer to the target rate thereafter, providing room to remain accommodative” And adds “the ongoing domestic recovery is still incomplete and […] More
