National Bank of Serbia

August 10, 2017

The second of two 25-basis point interest rate cuts in 2016 was implemented in July of that year and left the rate level at its current 4.0%. Reductions had been made earlier totaling 350 basis points in 2015, 150 bps in 2014 and 275 basis points from April 2013 through the end of that year from a previous high point of 12.25%. The Executive Board of the National Bank targets inflation in a corridor centered on 3%, give or take 1.5 percentage points. According to a statement released after the latest policy review, which happened to coincide with an updated inflation report, Serbian inflation has moved within the target range since the start of this year. Total CPI is low and stable, core inflation is hovering around 2%, and inflation expectations remain well-anchored.

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



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