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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
- Serbian Central Bank kept Its benchmark rate steady at 1% (as expected) despite the rise in inflationary pressures.
- Serbia CPI surged to a new high of 5.7% YoY in September, its highest level since August 2013, diverging significantly from the central bank's 4.5-percent upper tolerance band.
- We have seen recently that CEE central banks have been raising rates to curb the inflationary pressures and have not hesitated to surprise the market with aggressive hikes (i.e. NBP, CNB).
- Serbian and Bulgarian central banks are the two last ones that have left their policy rate unchanged since the pandemic (see chart).
- It is important to notice that the the Bulgarian Lev (GBN) is pegged to the Euro at 1.9558 and the Serbian Dinar (RSD) seems also pegged to the EUR at 117.60.
- Hence, the two central banks may mirror the ECB policy outlook in order to avoid currency interventions in order to prevent their currency from appreciating too much.
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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