NBS key policy rate kept at 4%
In making the decision, the Executive Board took into consideration that inflation is expected to return within the target tolerance band towards mid-2017, the report says.
The inflation trend, the NBS estimates, should be led by the effects of past monetary easing and higher demand at home, as well as by a gradual recovery in global oil prices and inflation abroad.
On the other hand, the disinflationary impact of a further drop in prices of primary agricultural commodities and the resulting low food production costs owing to a good agricultural season will be felt for some time to come, the report adds.
The Executive Board advised caution in the conduct of monetary policy bearing in mind uncertainty in the international financial markets regarding future FED and ECB measures and their potential impact on global capital flows.
However, the successful implementation of fiscal consolidation and structural reforms, as well as the reduction of external imbalances, have strengthened the resilience of the domestic economy to potential adverse influences from the international environment. This is also confirmed by a sizable drop in the country’s risk premium to its nine-year low, the NBS notes.
Most Important News
06.04.2024. | Agriculture
Preconditions for Placement of Fresh Blueberries and Dried Plums in Chinese Market Secured
16.04.2024. | News
Jovan Ciric, Leasing Director Retail MPC Properties – MPC Echo symbolizes our desire for good ideas and innovative endeavors to spread freely and bring about positive changes
16.04.2024. | News
10.04.2024. | Finance, IT, Telecommunications, Tourism, Sports, Culture
Creative Industry – What This Serbian Economy Sector Worth EUR 2 Billion Encompasses
10.04.2024. | Finance, IT, Telecommunications, Tourism, Sports, Culture
18.04.2024. | Industry, Finance
Here come the new hunters for Serbian gold – Australian Strickland Metals buys mining project on mountain Rogozna
18.04.2024. | Industry, Finance
16.04.2024. | News
Economy Fair in Mostar opens – 26 companies from Serbia exhibiting
16.04.2024. | News
18.04.2024. | Transport
Jovanovic: Purchase of Siemens trams produced in Kragujevac for GSP Beograd should be considered
18.04.2024. | Transport