Another Central Bank Rate Hike in Serbia
November 10, 2022
Officials at the National Bank of Serbia today announced their third straight 50-basis point interest rate hike and seventh increase since April. The rate had been 1.0% from December 2020 until tightening started earlier this year. Serbian inflation remains far above the new policy rate of 4.5%.
Opting for a gradual and calibrated tightening of monetary conditions in the domestic market, the Executive Board took into account that inflation in Serbia is still largely determined by global cost-push pressures, while core inflation (8.6% y-o-y in September), also rising in the past months on the back of higher imported inflation, still trends considerably lower than headline inflation (14% y-o-y in September).
The hopes are that progressive tightening will keep expected inflation in check and that imported inflation will recede eventually.
Copyright 2022, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: National Bank of Serbia
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