National Bank of Serbia

November 10, 2016

Serbia’s key central bank policy rate had been at 12.25% as recently as April 2013 but was slashed by 275 basis points over the remainder of 2013, 150 basis points during 2014, 350 bps last year, and this year by 25 basis points in both February and July. The resulting 4.0% level has not been changed as subsequent reviews including the most recent that concluded today. In a released statement, inflation is projected to rise inside the 1.5-4.5% target by early next year. Although food remains a source of disinflation, prior monetary stimulus, a recovery of domestic demand, higher global oil prices, and an uptick in the inflation rates of other countries underpin the forecast of more elevated Serbian inflation.

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



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