Printer Friendly

Serbia keeps the key policy rate unchanged at 11%.

National Bank of Serbia's Executive Board decided to keep the key policy rate unchanged at 11%. The Board stated that the fall in Serbia's year-on-year inflation continues, largely owing to monetary policy measures and stabilisation in the food market. The weakening of inflationary pressures indicates that the trend will accelerate in the coming period and that inflation will return within the target tolerance band (4[+ or -]1.5 %) by October. The economic recovery that started in late 2012 has continued in 2013. The Executive Board estimates that the Serbian economy will grow 2% this year, led by rising exports. The sustainability of economic recovery is indicated by the easing of external imbalances and the current account deficit of 5.7% of GDP in the first half of the year. National Bank of Serbia's Executive Board believes that additional fiscal consolidation measures and the implementation of structural reforms will contribute to the further reduction in inflationary pressures and external imbalances, giving a positive boost to Serbia's investment risk perception.However, given the higher risk aversion of international investors, prompted by the Fed's hint at downsizing of the quantitative easing programme, which spurred a rise in the country's risk premium and depreciation pressures in Serbia and almost all countries in the region, the Executive Board decided to keep the key policy rate unchanged.The next rate-setting meeting will be held on 12 September 2013. Governor's Office National Bank of Serbia
COPYRIGHT 2013 Balkan Business News
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2013 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Balkan Business News
Date:Aug 9, 2013
Words:238
Previous Article:Serbia plans to conclude contracts for new energy facilities next year.
Next Article:Austrian manufacturer of bricks, Tondach AG, expresses their satisfaction in Serbia.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters