National Bank of Serbia lowered referential interest rate to 9.5%

The Monetary Board of the National Bank of Serbia (NBS) lowered the referential interest rate today (December 29, 2009) by 0.5%, to 9.5% on annual basis.

The referential interest rate was previously lowered by 1% on November 5th (to 10%), on October 8th (to 11%), and on July 10th (to 12%).

The next meeting of the Monetary Board will be held on January 12, 2010.

NBS uses the interest rate on two-week repo operations as the referential interest rate. In repo operations, NBS sells securities with the obligation to buy them back in certain time with interest.