Macroeconomic policy

BELGRADE - The National Bank of Serbia (NBS) Executive Board decided on Thursday to keep the key policy rate at 5.75 pct and the rates on deposit and lending facilities at 4.5 pct and 7.0 pct, respectively.

Analysts at some international banks are now expecting the Turkish Central Bank to deliver a rate cut in November after the bank altered its guidance.

In a statement accompanying its rate decision, the bank said on Sept. 19 that "monetary policy tools will be used effectively in case a significant and persistent deterioration in inflation is foreseen."

Most economists expect Türkiye's Central Bank to keep its policy rate steady at 50 percent when members of the Monetary Policy Committee meet later this week on Sept. 19.

In August, the monetary authority held the one-week repo auction rate unchanged at 50 percent for a fifth straight month. The bank last raised rates in March by 500 basis points.

Erich Arispe Morales, Senior Director at Fitch Ratings, emphasized on Monday the necessity for Türkiye to maintain a tight monetary policy to improve and sustainably decrease inflation expectations, anticipating a gradual easing by the first quarter of 2025.

Credit rating agency Fitch upgraded Türkiye's Long-Term Foreign-Currency Issuer Default Rating (IDR) from B+ to BB- on Friday.

BELGRADE - The National Bank of Serbia (NBS) Executive Board decided on Thursday to keep the key policy rate at 6 pct, and the rates on deposit (4.75 pct) and lending (7.25 pct) facilities also remained unchanged.

The main policy framework will not change, and the main objectives will be preserved when the medium-term program is updated in September, Vice President Cevdet Yılmaz has said.

BELGRADE - The National Bank of Serbia (NBS) Executive Board decided on Thursday to trim the key policy rate to 6.25 pct and the rates on deposit and lending facilities were also lowered to 5.00 pct and 7.50 pct, respectively.

The European Central Bank (ECB) has cut its key interest rates by 25 basis points, marking the first reduction since 2019. The main refinancing rate, marginal lending rate, and deposit rate have been adjusted to 4.25%, 4.50%, and 3.75% respectively. This is the first decrease in the refinancing and marginal lending rates since March 2016, and the deposit rate since September 2019.

Turkey's official statistics reveal that annual inflation surged to 75.45% in May 2024, marking the highest level since November 2022 and surpassing market forecasts of a 74.8% increase, up from 69.8% the previous month.

Monthly consumer prices rose by 3.37% in May compared to March, slightly higher than the 3.31% increase recorded in the previous month.