Bank of Serbia
January 16, 2014
Serbia’s one-week repo rate had ben cut last year by 50 basis points in May, 25 bps in June, and 150 bps in 4Q through a 50-bp move each month of the quarter. Analysts anticipated another cut today, the central bank executive board instead left the key rate at 9.5% and issued a statement that “accentuated the need for a cautious monetary policy considering the risks emanating from movements in international financial markets, and in particular the Fed’s decision on tapering the quantitative easing program.” The statement noted sharply lower inflation and expected inflation but predicted inflation will drift higher and back into its targeted band of 2.5-5.5%. The next meeting is set for February 13.
Copyright 2014, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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