National Bank of Serbia Reduces Policy Rate by 50 Basis Points for Fifth Time in Seven Months

June 11, 2015

As recently as end-April 2013, Serbia’s main policy interest rate stood at 11.75%, but now it becomes 6.0% after the latest cut of 50 basis points.  A statement from the central bank’s executive board observes that inflation remains depressed below the target floor by external deflationary forces plus a tighter fiscal policy.  The hope and expectation is that the series of monetary easings will help lift inflation back into its target corridor by yearend.  The current account deficit has fallen, so officials project a more stable exchange rate.  A high level of uncertainty persists.  The next policy meeting is on July 9.

Copyright 2015, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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