Key Policy Rate Increase in a Dinar Straightening Function

The Minister of Finance in the Government of the Republic of Serbia Mr. Mirko Cvetkovic said that the National Bank of Serbia Monetary Policy Committee decision on key policy rate increase of 0,75 pp will serve as a dinar straightening element and as an instrument in combating inflation.

After extraordinary Telekom “Serbia” shareholders’ assembly, Cvetkovic said that looking at the volume of the budgetary spending there was no need for such a measure, being that in the month of January there were no records of high spending, and a budgetary surplus was recorded in amount of 12,7 bln of dinars.
The Minister of Finance in the Government of the Republic of Serbia Mr. Mirko Cvetkovic said that the National Bank of Serbia Monetary Policy Committee decision on key policy rate increase of 0,75 pp will serve as a dinar straightening element and as an instrument in combating inflation.

After extraordinary Telekom “Serbia” shareholders’ assembly, Cvetkovic said that looking at the volume of the budgetary spending there was no need for such a measure, being that in the month of January there were no records of high spending, and a budgetary surplus was recorded in amount of 12,7 bln of dinars.

Minister estimated that MPC’ decision on key policy rate increase to 10,75 percent was motivated by the need to reduce the effects of internal political turbulences effecting economic trends.

Cvetkovic confirmed that today’s Monetary Policy Committee decision was brought with the approval of Ministry of Finance representatives in that body.