UPDATE 1-Serbia central bank leaves its key rate unchanged
2010-04-20 10:54 (UTC)
BELGRADE, April 20 (Reuters) - Serbia's central bank left its key policy rate unchanged at 8.5 percent on Tuesday, pausing after two cuts over the previous month lowered rates by a total of 100 basis points.
The bank's statement offered no further details and said that the next rate-setting meeting would be held on May 10.
The central bank last cut its two-week repo rate by 50 basis on April 8 in a surprise move amid signs the Serbian economy was still struggling to emerge from recession.
'This latest move was expected as the central bank is still waiting to see the impact of its previous rate cut,' a trader with a Belgrade-based commercial bank said.
Serbia's core inflation remained at zero in the first three months of 2010 and cumulative inflation was below the lower end of a 4 percent to 8 percent band targeted for this year.
However, weak demand, reflected in a bigger-than-expected 1.6 percent GDP contraction in the last three months of 2009, remains a concern.
Dejan Soskic, named as the next central bank governor, said that policymakers should consider making it easier for Serbians to borrow money in an effort to boost spending.
'Weaker demand requires such instruments,' Soskic said at the sidelines of an economic forum in Belgrade.
2010-04-20 10:54 (UTC)
BELGRADE, April 20 (Reuters) - Serbia's central bank left its key policy rate unchanged at 8.5 percent on Tuesday, pausing after two cuts over the previous month lowered rates by a total of 100 basis points.
The bank's statement offered no further details and said that the next rate-setting meeting would be held on May 10.
The central bank last cut its two-week repo rate by 50 basis on April 8 in a surprise move amid signs the Serbian economy was still struggling to emerge from recession.
'This latest move was expected as the central bank is still waiting to see the impact of its previous rate cut,' a trader with a Belgrade-based commercial bank said.
Serbia's core inflation remained at zero in the first three months of 2010 and cumulative inflation was below the lower end of a 4 percent to 8 percent band targeted for this year.
However, weak demand, reflected in a bigger-than-expected 1.6 percent GDP contraction in the last three months of 2009, remains a concern.
Dejan Soskic, named as the next central bank governor, said that policymakers should consider making it easier for Serbians to borrow money in an effort to boost spending.
'Weaker demand requires such instruments,' Soskic said at the sidelines of an economic forum in Belgrade.