Serbia: NBS keeps its policy rate unchanged in March
March 17, 2016
At its 17 March monetary policy meeting, the Executive Board of the National Bank of Serbia (NBS) decided to keep 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 7 April.
In its brief accompanying statement, the NBS commented that inflationary pressures remain subdued, which reflects both domestic and external factors. The Bank remarked that the current expansive monetary policy will boost inflationary pressures in the medium term. Inflation is expected to return to within the Central Bank’s target of 4.0% plus or minus 1.5 percentage points in late 2016 or early 2017.
Author: Dirina Mançellari, Senior Economist