National Bank of Serbia Fights Against Inflation

Politics ♦ Published: January 30, 2013; 10:18 ♦ (Vindobona)

The asset quality in the banking sector shows first signs of stabilization, Raiffeisen Research reports.

National Bank of Serbia Fights Against Inflation / Picture: © Vindobona.org

Monetary policy

Executive Board (EB) of the NBS kept the upgrading key rate cycle, increasing the key policy rate by 25 bps to 11.5% (+200 bps increases since June/12 when the upgrade key rate cycle started). The decision was supported by growing inflation (2012: 12.2% yoy) being outside the targeted range (4% +/+ 1.5%) and high core inflation (2012: 8.2% yoy).

Further,…