National Bank of Serbia

July 10, 2017

Starting in April of 2013, the Executive Board of the NSB cut Serbia’s policy interest rate by a total of 825 basis points from 12.25% to 4.0%. The reductions included 350 basis points in 2015 and, most recently, a pair a 25-bp cuts in February and July of 2016. A statement released today after the latest policy review projects in-target inflation. A 3-percentage point target is centered on 3.0%, and headline inflation stands now at 3.5%. Core inflation is hovering around 2%, and domestic demand is recovering but only gradually. There seems to be no rush to begin tightening.

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



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