Central bank cuts reference interest rate to 6.5 pct
The National Bank of Serbia (NBS) Executive Board on Monday lowered the reference interest rate by 0.5 percentage points to 6.5 percent.
Monday, 11.05.2015.
16:57
Central bank cuts reference interest rate to 6.5 pct
“These movements reflect low aggregate demand and the absence of major cost-push pressures ... Inflation expectations, which have been within the target tolerance band for over a year, declined still further in the course of several recent months,” said the NBS website."The positive effects of fiscal consolidation measures and the conclusion of the arrangement with the IMF confirm the commitment of the Serbian economic policy makers to strengthening public finances and ensuring sustainable recovery of the domestic economy," a statement quoted by Tanjug said.
The Executive Board also adopted an amendment to the decision on interest rates applied by the National Bank of Serbia, narrowing the corridor of interest rates set in reference to the key policy rate from ± 2.5% to ± 2.0%.
As assessed by the Executive Board, this measure should help stabilize interest rates in the interbank money market.
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