National Bank of Serbia Holds Rate at 12.50%

The National Bank of Serbia maintained its 2-week repo rate unchanged at 12.50%.  The Bank said: "The Executive Board judges that the key policy rate has reached or is very near a peak of its current cycle," and also went on to say: "Nonetheless, as the inflationary pressures continue, the authorities must be rather cautious in reducing the degree of monetary policy restrictiveness, taking into account all instruments of monetary regulation available."  Serbia reported annual inflation of 14.7% in April, up from 14.1% in March, as prices rose 1.1% month on month (after rising 2.6% month on month in March).

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