NBS introduces stricter monetary policy - referential interest rate increased to 11.5%

National Bank of Serbia has increased referential interest rate today (February 28, 2008) by 0.75%, to 11.5%.

According to the National Bank of Serbia, this decision was made on the basis of current economic trends, and te reasons for intensification of monetary policy will be presented by Governor Radovan Jelašić tomorrow at the press conference.

- Referential interest rate was increased at the regular meeting of the Monetary Board of NBS and it signifies intensification of restrictivity of monetary policy, so that inflation pressures and pressures that influence weakening of the national currency could be reduced - said economist Goran Nikolić today.

According to his words, the decision of NBS to increase referential interest rate was made at the moment when basic inflation amounted to about 7% and it was outside the projected frame, while the dinar exchange rate was at the highest level since the beginning of the year.

NBS uses interest rate on two-week repo operations as referential interest rate, and the previous change occurred on February 6th when the interest rate was increased also by 0.75%.