Economy / Serbia
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Further Rate Hikes Ahead
May 2008 | Economic AnalysisSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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The National Bank of Serbia has raised its 2-week repo rate by 50bps to 15.75% - bringing the total rate increase this year to 575bps. Serbia's interest rate is now on a par with Turkey's, and the two countries have the highest rates in Europe. Going forward, we forecast that further rate hikes lie ahead, with our year-end interest target set at 16.25%. That said, we retain our view that further monetary loosening will occur in 2009.