First Serbian Central Bank Rate Cut since December
May 8, 2014
The National Bank of Serbia’s policy interest rate was cut between May and December of 2013 from 11.75% to 9.5%, but then left unchanged this year after meetings in January, February, March and most recently April 17.
Today, the easing trend was resumed and a statement released that noted sub-target inflation, strong disinflationary forces going forward, and the absence of any “negative impact on the country’s risk premium and external trade so far from the Fed’s QE tapering and geopolitical tensions arising from the Ukrainian crisis.” Officials consequently cut the key interest rate by a further 50 basis points to 9.0% and applauded recent fiscal measures that will promote low inflation from a structural perspective. June’s monetary policy meeting is scheduled for the 12th.
Copyright 2014, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Serbia
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