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

04. Mar 2021.
Belgrade Airport Gets New Central Passenger Zone and Tesla Square

04. Mar 2021.
Tariffs on Import of Aluminum from Serbia to USA Raised to 25.84%

02. Mar 2021.
Fortaco Group Buys Serbian Company Rapp Zastava

02. Mar 2021.
Projects for Financing from Westerns Balkans Investment Framework Worth EUR 760 Million Applied

01. Mar 2021.
Air France Announces Return to Belgrade in Late March

26. Feb 2021.
Government of Serbia Adopts Employment Strategy from 2021 to 2026

24. Feb 2021.
NBS Innovates QR Code Payment Order Service

23. Feb 2021.
Popular Simka Looking for New Owner – Chocolate Factory in Vranje Offered at RSD 187.9 Million

23. Feb 2021.
Nidec Looking for Location for Construction of Factory Worth Nearly USD 2 Billion

23. Feb 2021.
Cooper Tire, Owner of Trayal Krusevac, to be Sold to Goodyear Tire for USD 2.8 Billion

22. Feb 2021.
Monthly Inflation in January 0.4%, Year-on-Year at 1.1%

22. Feb 2021.
Fourteen Parcels of Building Land in Kursumlijska Banja up for Sale

19. Feb 2021.
Fuel Price Rises by Approximately One Dinar Due to Oil Price Jump

19. Feb 2021.
Marera Buys BIGZ Building – Over EUR 40 Million to be Invested in Modern Business Center

17. Feb 2021.
Fertico Starts Test Production in Indjija

12. Feb 2021.
Serbia’s Dinar Bonds Included in J.P. Morgan Emerging Economies Index Family

11. Feb 2021.
NLB Announces Acquisition of All Shares of Komercijalna Banka

11. Feb 2021.
Sloboda AD Cacak Buys Part of Property of Sloboda Aparati for RSD 47.5 Million

10. Feb 2021.
CTP Building 740,000 m2 of Industrial Property – GLA of 10 million m2 Targeted by End-2023

09. Feb 2021.
Natural Gas Power Plant in Pancevo to Start Working by Mid-2021

08. Feb 2021.
Zijins Sales Revenues in 2020 Amount to USD 698 Million – Two Tons of Gold Sold to NBS

05. Feb 2021.
Serbias Public Debt at 56.8% at end-2020

05. Feb 2021.
Sale of Ten-Year Government Bonds on February 9

05. Feb 2021.
Serbian Budget Deficit at 8.3% of GDP in 2020

03. Feb 2021.
Open Invitation for Banks and Leasing Houses to Take Part in Program of Support to SMEs

02. Feb 2021.
Investment Plan for Energy Sector Worth EUR 10 Billion Prepared

02. Feb 2021.
Komercijalna Banka Wants 100% Share in Komercijalna Banka Banjaluka

01. Feb 2021.
New Sale of Azotara Pancevo – Initial Price Halved Compared to First Auction

01. Feb 2021.
State to Provide Guarantees to EMS for Trans-Balkan Corridor

29. Jan 2021.
Program of Economic Reforms for Period from 2021 to 2023 Adopted