Serbia: NBS keeps its policy rate on hold in May
May 17, 2016
At its 17 May 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 its lowest level since the NBS introduced an inflation targeting mandate in 2006. The next monetary policy meeting is scheduled for 9 June.
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’ target range of 4.0% plus or minus 1.5 percentage points in early 2017. Moreover, the NBS added that macroeconomic fundamentals continue to improve. However, persistent uncertainties in international commodity markets pose downside risks to the Serbian economy going forward.
Author: Dirina Mançellari, Senior Economist