Serbia: NBS keeps its policy rate on hold again in June
June 9, 2016
At its 9 June monetary policy meeting, the Executive Board of the National Bank of Serbia (NBS) decided to maintain the reference rate unchanged at 4.25%, thus leaving the rate at the lowest it has been since the NBS introduced an inflation targeting mandate in 2006. The next monetary policy meeting is scheduled for 7 July.
In its brief accompanying statement, the NBS commented that inflationary pressures are slowly picking up and that inflation will likely return to within the Central Bank’s target range of 4.0% plus or minus 1.5 percentage points early next year. Inflation is expected to increase amid a slow recovery of the economy and a pick-up in Euro area inflation. However, the NBS added that persistent uncertainties in international commodity markets pose downside risks to the Serbian economy.
Author: Dirina Mançellari, Senior Economist