National Bank of Serbia Retains 4.0% Interest Rate

January 12, 2017

From an April 2013 high of 12.25%, the Serbian central bank interest rate was reduced 275 basis points later that year, 150 bps in 2014, 350 bps in 2015, and by 25 bps each in February and July of last year. A statement following today’s decision to keep the rate at 4.0% projects low, stable and in-target inflation this year. The price target is a 3 percentage point band centered on 3.0%. Domestic demand is recovering. So have oil prices to some extent, and foreign inflation rates are generally higher, too. On the other hand, “relatively low costs of food production will continue to be the source of disinflationary pressure for some time yet.”

Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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