NBS raises key interest rate to 11.5 pct

The National Bank of Serbia (NBS) has raised the key rate of interest 0.75 percent to 11.5 percent.

Izvor: B92

Thursday, 28.02.2008.

16:07

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The National Bank of Serbia (NBS) has raised the key rate of interest 0.75 percent to 11.5 percent. The decision has been taken on the basis of current economic trends, and central bank Governor Radovan Jelasic will give the reasons behind the decision to tighten monetary policy at a press conference tomorrow, the National Bank announced. NBS raises key interest rate to 11.5 pct The key rate of interest was increased at a regular session of the NBS’s Monetary Committee and means greater austerity measures in order to reduce inflatory pressures and the pressures that have weakened the dinar, said economist Goran Nikolic. According to Nikolic, the NBS’s decision to increase the key rate of interest was taken at a time when the base rate at the mid-year point was around seven percent and outside its projected framework, while the dinar was at its weakest since the start of the year.

NBS raises key interest rate to 11.5 pct

The key rate of interest was increased at a regular session of the NBS’s Monetary Committee and means greater austerity measures in order to reduce inflatory pressures and the pressures that have weakened the dinar, said economist Goran Nikolić.

According to Nikolić, the NBS’s decision to increase the key rate of interest was taken at a time when the base rate at the mid-year point was around seven percent and outside its projected framework, while the dinar was at its weakest since the start of the year.

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