NBS lowers its benchmark interest rate again

National Bank of Serbia (NBS) has decided to cut the benchmark interest rate again to 3.5 percentage points. Experts say that this move would lead to lower interest rates on both retail and corporate loans in dinars.

The NBS made the decision on the back of the mid-term inflation project and the development of the key factors relating to the inflation. “Since the beginning of the year, the annual inflation rate has been within the targeted one and, in August alone, it fell to 2.5%. We are going to continue working on reducing the inflation rate to 1.5%, as well as lowering inflationary expectations for two years ahead. Also, the negative effects of the drought on agricultural produce were less severe than expected”, the NBS says in its statement.

„In the next period, the bank’s Executive Board expects the inflation to be in the region of 3% (± 1.5%)”, the bank adds.

Economy experts point out that the lower benchmark interest rate will again result in lower interest rates on retail and corporate loans. Two years ago, the benchmark interest rate stood at 7.5%, in 2014 it was 9%, while in 2008, it was 18%.

(Blic, 09.10.2017)

http://www.blic.rs/vesti/ekonomija/nbs-ponovo-smanjila-referentu-kamatnu-stopu-dinarski-krediti-jeftiniji/rbnxxw9

This post is also available in: Italiano

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