Serbia’s central bank has raised the reference interest rate further, by 0.25 of a percentage point (pp), to 2.75% as part of tightening monetary policy, it said on July 7.
Previously Serbia increased its key repo rate to 2.5% from 2% in June this year.
"The decision was taken due to cost pressures at the global level as a result of high world prices of energy sources, primary agricultural products and industrial raw materials, as well as the prolongation of the difficult functioning of international supply chains," the central bank said.
Annual inflation in Serbia amounted to 10.4% in May, of which about two-thirds of the contribution still came from food and energy prices.
According to the executive board's assessment, inflation should return to the central bank target (3 ± 1.5%) in the second half of 2023.