The Central Bank of Serbia kept interest rates unchanged despite political tensions.
The National Bank of Serbia has decided to keep its benchmark interest rate at 5.75% for the sixth consecutive month, despite ongoing political protests and persistent price pressures in the country. This decision has drawn attention during what are considered the most significant protests in the last decade.
The announcement made on Thursday aligned with the expectations of 14 out of 16 economists surveyed by Bloomberg, while the other two anticipated a quarter-point rate cut. The central bank's decision was made with the current inflation situation in mind. Although inflation showed a downward trend last month, it still remains above the bank's target range of 1.5% to 4.5%. In recent months, price increases have consistently hovered around this target, even surpassing the upper limit in January.