National Bank of Serbia
Equities and Dollar Slip, Japanese Growth Revised Lower
March 9, 2023
With Fed Chairman Powell’s two-day testimony over and the Beige Book published, the dollar fell overnight by 0.7% against the yen, 0.3% versus the Swiss franc, kiwi, Aussie dollar and sterling and 0.2% relative to the euro and Chinese yuan. Powell left scant doubt that multiple additional interest rate hikes like ahead, and the Fed’s […] More
Serbian Interest Rate Hike
February 9, 2023
Executive Board members at the National Bank of Serbia today authorized their 11th consecutive interest rate since April, but the 25-basis point size of the increase both today to 5.5% and at January’s policy review were only half the 50-bp size of the final four hikes done in 2022. Tightening began last April from a […] More
Dollar Down in Pre-Open Trading
February 9, 2023
The dollar fell broadly overnight, dropping 0.9% against the Australian and New Zealand dollars, 0.7% versus sterling, 0.5% relative to the euro and in weighted terms, 0.4% vis-a-vis the Japanese yen and Canadian dollar and 0.2% against the Chinese yuan. Equity markets have strengthened amid favorable earnings reports and soothing remarks from President Biden touting […] More
Expectations of Further Disinflation Depress the Dollar to 7-Month Weighted Low
January 12, 2023
The dollar plunged 1.4% overnight against the Japanese yen and edged another 0.1% lower relative to the loonie and euro. The weighted DXY dollar index is hovering near its lowest levels since early June and around 10% below last year’s subsequent high. U.S. December CPI inflation figures, due in around 20 minutes, are widely projected […] More
Peru and Serbia
December 8, 2022
At other central banks, the restoration of price stability remains the dominant priority. The Central Reserve Bank of Peru’s interest rate benchmark has undergone a fourth straight 25-basis point hike, reaching 7.5% versus 0.25% at the end of 2020 and 2.5% at the end of 2021. Peruvian inflation accelerated 0.2 percentage points to 8.45% in […] More
Pick Your Poison: Excessive Inflation, Stagnant Growth or, Most Likely, A Mix of Both
December 8, 2022
The lagged effects of higher interest rates are biting into economic growth, but inflation remains way too high. This mix presents central bankers with a tougher decision, and financial market participants are getting whip-sawed. Compared to Wednesday closing levels the dollar is down 0.4% against the Canadian and Australian dollars, 0.2% versus the euro and […] More
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
