National Bank of Serbia

April 12, 2018

The latest in a multiyear series of cuts in Serbia’s key policy interest rate has reduced such to 3.0% from 3.25%. There was also a 25-basis point cut in the March monthly meeting and, before that, a 50-basis point cut last October. Previous rate cuts totaled 2.75 percentage points in the final eight months of 2014, 150 bps in 2014, 350 bps in 2015, and 50 bps in 2016. CPI inflation of 1.4% as of March fell more sharply than anticipated in the first quarter, core inflation is at a record low, and inflation expectations appear well anchored, according to a released statement today. “The Executive Board pointed out that caution in the conduct of monetary policy is still mandated by the developments in the international financial market and movements of global primary commodity prices.”

Copyright 2018, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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