Serbia raises interest rates for first time since 2008
Image by Bobica10 / Shutterstock.com
The National Bank of Serbia hiked its main interest rate by 50 basis points to 1.5%, the first rise in borrowing costs since 2008, while rates on deposit and credit facilities were lifted to 0.5% and 2.5%, respectively, according to a report by Tradingeconomics.com.
The move comes as the economy faces rising inflationary pressures due to global supply snags, made worse by the Ukraine crisis.
The headline inflation rate jumped to 8.8% in February, the highest since June 2013 and well above the central bank's target of 1.5%-4.5% due to rising energy and raw material prices.
Still, the central bank noted that the current tightening of monetary conditions would not significantly affect economic activity in our country, pointing to higher levels of investment and private consumption.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.