National Bank of Serbia Rate Hike

June 8, 2023

Perhaps anticipating a likely ECB rate hike next week, officials at the National Bank of Serbia, who had not changed interest rates at May’s review, lifted the key benchmark today to 6.25% from 6.0%. From a pandemic low of 1.0%, the rate had been raised a total of four percentage points in the final nine months of 2022 and now by an additional 125 basis points this year. Since Serbian CPI inflation had dropped 1.1 percentage points in April to 15.1% versus March’s record high, analysts had not been expecting today’s interest rate increase. Citing many persistent price risks around the world, today’s statement of explanation strikes a cautionary tone: “It is possible that the period of elevated interest rates will last somewhat longer than initially anticipated.”

Copyright 2023, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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