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Serbia’s Central Bank to Focus on Slowing Inflation Next Year

Dec. 17 (Bloomberg) -- Serbia’s central bank will seek to slow inflation next year while keeping its permissable target band unchanged.

The Belgrade-based Narodna Banka Srbije will focus on reducing price growth to 4 percent plus or minus 1.5 percentage points, from more than 10 percent this year and pledged to make interest rate changes “consistent and predictable,” the bank said today in a statement posted on its website.

The bank will maintain a managed-floating regime for the dinar exchange rate, “intervening in the foreign-exchange market” to smooth its daily swings, encourage interbank trade, or maintain financial and price stability, it said.

Inflation reached 11.9 percent in November and the central bank raised the benchmark interest rate to 11.25 percent on Dec. 14.

To contact the reporter on this story: Gordana Filipovic in Belgrade at

To contact the editor responsible for this story: James M. Gomez at

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