The Executive Board of the National Bank of Serbia (NBS) decided to keep the key policy rate unchanged at 4.5 percent, said the NBS, which expects this year’s fiscal deficit will be lower by around 40 percent relative to 2014.
The decision was made in consideration of the prevailing uncertainties associated primarily with the international environment
“Above all, the response of market participants to the expected increase in the Fed’s rate is uncertain, including the effects of such increase on commodity and financial markets, notably capital flows towards emerging economies,” reads the release.
Even so, these effects will be mitigated by the ECB’s further monetary accommodation in December and the extension of quantitative easing until March 2017, adds the release.
Source: Tanjug
Related Articles
