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Serbia Inflation May Peak At 10.5% This Summer (NBS Tabakovic)

CEE
  • National Bank of Serbia (NBS) Governor Tabakovic mentioned that inflation may peak at 10.5% this summer.
  • Tabakovic added that NBS returned to buy Euro on FX market this week as EURRSD has been deviating from its 117.60 'peg' (RSD strength) following NBS hikes in the past two months.
  • The new acceleration in inflation since the start of the year has 'pushed' Serbia policymakers to follow their CEE peers and start a tightening cycle to tame inflation.
    • NBS has proceeded with two 50bps hikes in the past two months after leaving its policy rate steady at 1% since December 2020.

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