National Bank of Serbia

June 9, 2016

Serbia’s policy interest rate had been at 8% just 15 months ago.  Seven 50-basis point reductions over the balance of 2015 were topped off with a 25-basis point cut this past February to the current level of 4.25%.  That rate was retained at today’s June monthly meeting, and a released statement  again justifies no need for additional easing.  Foremost, a sufficiently accommodative stance will “help inflation return and stabilize within the target tolerance band early next year.” Other factors promoting this goal are “higher prices of oil and primary agricultural commodities along with the expected increase in euro area inflation and a faster recovery of the Serbian economy.”

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



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