National Bank of Serbia

April 7, 2016

The statement released by the central bank executive board after it left the 4.25% key interest rate as is for a second straight time makes the same points mentioned in the prior statement.  The “cautious” current policy stance is projected to promote gradual economic recovery and a moderate return of inflation, which should return to target either late this year or in early 2017.  Much of the statement’s text deals with global risks — low commodity prices, divergent monetary policies, geopolitical strains and capital outflows in emerging markets including Serbia of haven-seeking money.  Officials are counting on ECB stimulus to “contribute to the mitigation of external risks” in time.  The next board meeting is scheduled May 17.

Seven 50-basis point central bank interest rate cuts were engineered last year between March and October.  In February 2016, the rate was reduced to 4.25% from 4.5%.

Copyright 2016, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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