National Bank of Serbia Leaves Policy Rate at 4.0% and Expresses More Optimism

August 11, 2016

Serbia’s central bank policy rate had been halved in nine steps between March 2015 and July 2016 from 8.0% to 4.0%. Officials saw no need to ease further at the August review. Serbian┬áinflation, foreign rates of inflation, and domestic aggregate demand are projected to rise. Serbia is considered more immune from external shocks because of implemented “fiscal consolidation measures and structural reforms” at home. The budget and external deficits are shrinking. A final cause for optimism about the future reflects the monetary stimulus of other central banks.

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


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