News

Key Policy Rate Kept Unchanged

Thursday, 10. Dec 2015.

At its meeting today, the NBS Executive Board decided to keep the key policy rate unchanged at 4.5%.

The decision was made in consideration of the prevailing uncertainties associated primarily with the international environment. Above all, the response of market participants to the expected increase in the Fed’s rate is uncertain, including the effects of such increase on commodity and financial markets, notably capital flows towards emerging economies. Even so, these effects will be mitigated by the ECB’s further monetary accommodation in December and the extension of quantitative easing until March 2017.

The NBS Executive Board also considered how seasonal factors may affect liquidity movements primarily with regard to energy imports during winter months and the dynamics of fiscal expenditure execution. However, progress in fiscal consolidation and narrowing in external imbalances, coupled with favourable external funding conditions, will contribute to the relative stability of the dinar in the medium run. Based on our estimate, this year’s fiscal deficit will be lower by around 40% relative to 2014. The current account deficit will be down by about one-fourth compared to last year and will be fully covered by FDI. The anticipated gradual narrowing of internal and external imbalances will boost Serbia’s resilience to shocks in the international environment in the years to come.

The Executive Board stated that inflationary pressures will remain subdued in the coming period due both to domestic and global factors. At 1.4% in October, year-on-year inflation is below the NBS target tolerance band, with inflation expectations of the financial and corporate sectors also trending below the 4.0% inflation target for one and two years ahead. Inflation is expected to return within the target tolerance band in the second half of 2016.

Given the risks associated with developments in the international commodity and financial markets, the degree of expansiveness of the NBS monetary policy in the period ahead will depend primarily on the assessment of their potential effect on inflation.

The next rate-setting meeting of the Executive Board will be held on 12 January 2016.


Source: NBS

29. Sep 2023.
Dinar-to-euro exchange rate at RSD 117.1996

28. Sep 2023.
EBRD Approves Loan of EUR 25 Million for Rail Depots to Serbia

27. Sep 2023.
Dinar-to-euro exchange rate at RSD 117.1954

26. Sep 2023.
Dinar-to-euro exchange rate at RSD 117.1998

25. Sep 2023.
Dinar-to-euro exchange rate at RSD 117.2071

22. Sep 2023.
Statistical Office Projecting Inflation Until Year-End

22. Sep 2023.
Dinar-to-euro exchange rate at RSD 117.1990

21. Sep 2023.
Dinar-to-euro exchange rate at RSD 117.2072

20. Sep 2023.
Dinar-to-euro exchange rate at RSD 117.2079

19. Sep 2023.
Dinar-to-euro exchange rate at RSD 117.1976

19. Sep 2023.
Dinar-to-euro exchange rate at RSD 117.1991

18. Sep 2023.
Dinar-to-euro exchange rate at RSD 117.1960

18. Sep 2023.
Elections to be called by end of year for March 4

13. Sep 2023.
Dinar-to-euro exchange rate at RSD 117.1979

12. Sep 2023.
End-August NBS gross FX reserves at 23.6 bln euros

12. Sep 2023.
Brnabic: Current Inflation in Serbia 11.5%, Salaries and Pensions Growing Faster Than Prices

11. Sep 2023.
Once Famous Industrija Mesa BEK Zrenjanin up for Sale

11. Sep 2023.
Dinar-to-euro exchange rate at RSD 117.2086

08. Sep 2023.
Dinar-to-euro exchange rate at RSD 117.2059

07. Sep 2023.
NBS keeps key policy rate at 6.5 pct

06. Sep 2023.
Serbia registers 37.6 bln dinar budget surplus in January-July

06. Sep 2023.
Dinar-to-euro exchange rate at RSD 117.2019

05. Sep 2023.
Dinar-to-euro exchange rate at RSD 117.2025

04. Sep 2023.
Serbia signs ASEAN treaty

30. Avg 2023.
EUR 5 Million for Pisarnica App – Investment in Electronic Documentation Management

29. Avg 2023.
HomepageNews Bajatovic: Srbijagas Proposes Construction of New Gas Pipeline from Nis to Horgos

29. Avg 2023.
Ringier Transfers Entire Ownership Stake in NIN to CEO Jelena Drakulic Petrovic

28. Avg 2023.
State Proposes Minimum Wage of RSD 47,000, Non-Taxable Part for Employers RSD 25,000

25. Avg 2023.
Average Salary in June Amounts to RSD 85,539 – Half of Employees Paid up to RSD 65,358

22. Avg 2023.
NBS: Both Financial and Corporate Sectors Expect Easing of Inflation Pressures