Serbian Central Bank Raises Rate on Inflation Threat

Serbia’s central bank increased its benchmark interest rate to 9.5 percent, the highest in Europe, as rising food prices threaten its inflation target.

The half-point increase today by the Belgrade-based National Bank of Serbia was its third in three months and met the expectations of 13 of 21 analysts in a Bloomberg survey. One forecast the two-week repurchase rate would rise to 10 percent, while seven predicted no change.