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

18. Nov 2019.
Telekom Srbija to acquire Polaris Media

15. Nov 2019.
Renter sought for Hotel Stara Planina

08. Nov 2019.
Delta Holding interested in buying Sava Centar

08. Nov 2019.
New sale of Jugoremedija – Initial price RSD 762 million

08. Nov 2019.
Still no purchasers for Progres company premises – Third sale advertised

05. Nov 2019.
Cukaru Peki copper mine near Bor to open by 2021

04. Nov 2019.
State selling real estate throughout Serbia – Most expensive property, located in Dedinje, costs EUR

31. Okt 2019.
Unfinished building with heliport in New Belgrade up for sale – Price RSD 2.3 billion.

30. Okt 2019.
Hotel Srbija in Niska Banja gets new owner – Renovation by the end of 2020

28. Okt 2019.
Telekom Srbija to take over SRB Digital from Novi Pazar

17. Okt 2019.
Port of Sremska Mitrovica might get terminals for oil and grains, sand and gravel disposal sites...

15. Okt 2019.
Serbia to give land in Nova Pazova to German MTU – Investor obliges to invest EUR 100.9 million and

25. Sep 2019.
OTP Group officially buys Societe Generale Serbia

24. Sep 2019.
Billionaire Elon Musk announces expansion of Tesla to Serbia and Croatia

13. Sep 2019.
Hotel Olga Dedijer on Kopaonik up for sale – Resorts in Veliko Gradiste and Radoinja auctioned as we

13. Sep 2019.
Czech MD Investments 2000 becomes owner of Marina Dorcol for RSD 3.8 billion

11. Sep 2019.
Loan of EUR 74 million for SMEs within EU enterprise development program COSME

10. Sep 2019.
Bids for sale of shares of Komercijalna Banka opened – Second selection phase in November

02. Sep 2019.
State selling JAT Tehnika again – Initial price EUR 10.24 million

02. Sep 2019.
Ericsson looking to expand operations in Serbia – Telekoms partner for new IT systems and mobile ne

29. Avg 2019.
Shares of Tehnohemija Belgrade being sold

16. Avg 2019.
Chinese investor Eurofiber to open third factory for sock manufacturing in Cuprija

16. Avg 2019.
Ambitious project for new route over Danube in Belgrade – Bridge worth EUR 228 million by end of 20

15. Avg 2019.
Marina Dorcol land for sale – Construction of business-residential complex on land with surface are

14. Avg 2019.
Planinka buys Kursumlijska Spa – Grand opening by end of 2020, necessary investments exceed EUR 10

13. Avg 2019.
Serbia ranks first in greenfield investments on Financial Times list

11. Avg 2019.
VUCIC: EUR 12 billion for investment plan, investments to be made in utility, transport, energy dig

09. Avg 2019.
Kragujevac inviting bids for construction of public garage – Works worth EUR 3 million

08. Avg 2019.
PO Port Dubai to invest EUR 29 million in Port of Novi Sad – Opening of passenger terminal a pr

06. Avg 2019.
Komercijalna Banka selling building in Cukarica for EUR 6.5 million