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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CEE
- This morning, economic data showed that Serbian inflation accelerated to 10.4% in May (vs. 10% exp.), its highest level since April 2013, up from 9.6% the previous month.
- Last week, the National Bank of Serbia (NBS) maintained its tightening stance and raised its benchmark rate by 50bps to 2.50% (vs. 2% exp.).
- It was the third consecutive hike as inflationary pressures continue to accelerate in the CEE region.
- The chart below shows the sharp divergence between Serbia inflation rate and the policy rate in the past year.
- Prior the Ukraine war, it is likely that Serbia had been partly relying on its CEE peers' 'effort' (NBP, CNB and NBH), hoping that the gradual decline in inflation in H2 2022 will also have an impact on the domestic inflation.
- However, the new inflation shock has ‘forced' NBS policymakers to act and therefore surprised the market again with a ‘hawkish hike’.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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