Referential interest rate stays 8%

The Executive Board of the National Bank of Serbia has decided today to keep referential interest rate at existing level of 8% the central bank announced.

By making this decision, the Executive Board had in mind that inter-annual inflation has still been below the lower limit of allowed offset from objective, NBS announced.

The Executive Board estimates that, along with current monetary policy measures takes so far, disinflation effects will disappear based on low costs in food production and excepted correction of regulated prices wil contribute to return inflation within the limits by mid-next year.

The Executive Board expects that fiscal consolidation planned within budget for the next year will decrease negative influence of risk from the international environment and have positive effects on country’s risk premium which will contribute to maintaining of stable low inflation.

The next meeting of the Executive Board will be held January 15, it was announced.