National Bank of Serbia

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 […] More

Data Release Menu Today Dominated by Inflation and Industrial Production

November 10, 2022

Ahead of the U.S. October consumer price data release, the dollar had risen overnight by 0.6% against the euro and 0.3% relative to the Swiss franc and Australian dollar. But drops of 0.4% against sterling and 0.2% versus the Japanese yen and Mexican peso held the weighted DXY dollar index’s gain to 0.3%. Ten-year sovereign […] More

National Bank of Serbia Interest Rate Increased to 5.0% from 4.5%

October 6, 2022

Officials at the National Bank of Serbia engineered their seventh consecutive rate hike today. The rate had been cut 125 basis points during 2020 and remained at just 1.0% until an initial 50-bp rate hike six months ago. There have been five half percentage point increases so far along with a pair of 25-bp moves […] More

Varying Central Bank Interest Rate Changes to Tackle Inflation

October 6, 2022

The global environment of high inflation, slower economic growth, and central banks raising interest rates has favored the dollar. The weighted DXY dollar  index climbed 0.4% overnight. Although the poorly received plan to eliminate the highest British tax bracket has been withdrawn, British financial markets remain especially vulnerable. Sterling is 0.5% weaker today against the […] More

Serbian Central Bank Rate Hike was the Sixth in a Row

September 8, 2022

Serbia’s central bank interest rate was increased today to 3.5% from 3.0%. The 50-basis point move matches the size of increases undertaken in each  month of the second quarter, but analysts were expecting the move to be the same size as ones of 25 basis points in July and August. Serbian CPI inflation accelerated to […] More

Concern about European Economic Outlook Mounting

September 8, 2022

The record 75 basis point increase in European Central Bank interest rates failed to lift the euro, which continues to trade below dollar parity. Europe’s economy is more exposed than others to Russia’s invasion of Ukraine. Britain’s new prime minister, Liz Truss, has imposed an emergency freeze on gas and electricity rates. The weighted dollar […] More

Serbia’s Fifth Straight Central Bank Interest Rate Hike

August 11, 2022

The National Bank of Serbia today agreed to raise its policy rate by 25 basis points to a 3-year high of 3.0%. The move follows four earlier consecutive increases of 50 basis in April, May  and June followed by a 25-basis point increase in July. Serbian CPI inflation climbed to a 9-year high of 11.9% […] More

Second Serbian Central Bank Rate Hike

May 12, 2022

The National Bank of Serbia, which in April authorized its first interest rate hike in over ten years, just matched the 50-basis point size of that initial increase. A noted above, Serbian CPI inflation has accelerated more than threefold over the past year to 9.6% and is well above target. The new central bank interest […] More

Intensifying Global Risk Aversion

May 12, 2022

Equities hit an air pocket on Thursday in the Pacific Rim and Europe, closing down 2.2% in Taiwan and Hong Kong, 3.2% lower in Indonesia, and off 1.8% in Japan and Australia, 2.1% in India, 1.6% in South Korea and 1.9% in Singapore. Share price declines of 2.0% or more have so far occurred in […] More

50-Basis Point Interest Rate Hike in Serbia

April 7, 2022

The National Bank of Serbia became the latest monetary authority to tighten its stance, raising its policy interest rate by a half percentage point to 1.50%. Such had been at 1.0% since a 25-basis point cut in December 2020 that culminated 125 basis points of reduction during the first year of the pandemic. Officials reacted […] More