Serbia Holds Rates Steady in First Meeting After S&P Upgrade

  • Central bank keeps benchmark rate at 5.75% as forecasts split
  • Officials say investment-grade rating to help economic growth

The National Bank of Serbia in Belgrade.

Photographer: Oliver Bunic/Bloomberg
Lock
This article is for subscribers only.

Serbian policymakers held interest rates at their first meeting after the Balkan nation secured an investment-grade score, citing geopolitical risks and the impact of a summer drought.

After cutting the rate last month, the National Bank of Serbia on Thursday opted to keep its one-week repurchase rate at 5.75%, a move predicted by nine of 17 analysts in a Bloomberg survey.Bloomberg Terminal Eight had forecast a second-straight 25 basis-point reduction.