The National Bank of Serbia (NBS) Executive Board voted on Thursday to raise the benchmark interest rate by 50bp, to 2.5%.
“As the NBS interest corridor remained unchanged (±100 bp, i.e. ±1 pp relative to the benchmark interest rate), the credit facility rate equals 3.5% and the deposit facility rate 1.5%,” the NBS said in a press release.
“In making the decision on further tightening of monetary conditions, the Executive Board took into account the continuation of the Ukraine conflict, which resulted in deepening of the energy crisis globally, a further spike in the prices of primary agricultural commodities and industrial raw materials, and the continued aggravated functioning of international supply chains. Amid the build-up of inflationary pressures globally, the Executive Board assessed it was necessary to further tighten the monetary conditions at home, in order to limit the second-round effects on inflation expectations and preempt a further hike in domestic inflation. The NBS invests considerable effort to this end, including, among other measures, by maintaining relative stability of the dinar exchange rate against the euro,” said the NBS.
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