Central bank hikes key rate
The National Bank of Serbia (NBS) has decided to raise the key policy rate to 15.25 from 14.5 percent.
Friday, 25.04.2008.
09:55
The National Bank of Serbia (NBS) has decided to raise the key policy rate to 15.25 from 14.5 percent. Governor Radovan Jelasic said the Monetary Board's move came in order to curb the inflation, caused by growing salaries, record oil prices, and political crisis. Central bank hikes key rate He, however, maintaned Thursday that the inflation rate will remain within the projected span of three to six percent this year. Serbian dinar, RSD, indexed loans are expected to once again maintain the same interest rates, although the banks could use the restrictive monetary policy moves to make their loans pricier. Jelasic also said the NBS yesterday did not intervene in the inter-banking market "for the first time". The dinar continued a recent trend to gain a further 2.44 percent on the euro. Asked if the hard currency reserves will be threatened "if the dinar exchange rate must again be defended after May 11 elections", Jelasic said that the central bank would "rather use other instruments, than jeopardize the stability of the reserves". Radovan Jelasic (FoNet)
Central bank hikes key rate
He, however, maintaned Thursday that the inflation rate will remain within the projected span of three to six percent this year.Serbian dinar, RSD, indexed loans are expected to once again maintain the same interest rates, although the banks could use the restrictive monetary policy moves to make their loans pricier.
Jelašić also said the NBS yesterday did not intervene in the inter-banking market "for the first time". The dinar continued a recent trend to gain a further 2.44 percent on the euro.
Asked if the hard currency reserves will be threatened "if the dinar exchange rate must again be defended after May 11 elections", Jelašić said that the central bank would "rather use other instruments, than jeopardize the stability of the reserves".
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