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.



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