Interest rate on dinar loans goes down

BELGRADE - The National Bank of Serbia's (NBS) recent decision to reduce the reference interest rate from 8 to 7.5 percent created the conditions needed to further lower the interest rates on dinar loans, head of the NBS Council of Governors Nebojsa Savic said on Sunday.

"The drop in interest rates on dinar loans is precisely what has been happening on the market for some time," Savic told Tanjug.

The monetary policy reacts to events on the market and the reference interest rate has been on a downward spiral for a considerable time, but it needs support for the fiscal policy in order to continue dropping, he underscored.

The current reference interest rate is at around 5 percent, Savic stated.

Photo Tanjug, J. Pap (archive photo, illustration)