Serbia’s central bank decided to increase its key repo rate by 25 basis points to 6% to counter inflationary pressures, it said on Thursday.
The central bank also raised the deposit facility rate and the lending facility rate by 25 basis points, to 4.75% and 7.25%, respectively, it said in a statement.
Inflationary pressures on the global and domestic markets proved to be stronger and more persistent than previously expected, the National Bank of Serbia (NBS) noted, adding that the trend requires further tightening of monetary policy.
The latest data published by the national statistical office showed that Serbia’s consumer prices increased by 16.1% year-on-year in February, after rising by 15.8% the month before.
The central bank will hold its next rate-setting meeting on May 11.
Source: SeeNews, Momentum
