Serbia Raises Rate to 11.5% to Curb 2011 Inflation

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Serbia’s central bank raised Europe’s highest benchmark interest rate for the fifth time in five months, giving the dinar a 0.3 percent boost, as it battles accelerating inflation.

The Belgrade-based National Bank of Serbia increased the two-week repurchase rate today by a full percentage point to 11.5 percent, matching the forecasts of 6 of 21 economists polled by Bloomberg. Eleven expected the bank to take the rate to 11 percent, while four saw no change.