Monetary inflation

The Central Bank has raised its year-end inflation forecast from a previous 58 percent to 65 percent, while lifting the end-2024 forecast from 33 percent to 36 percent.

The annual inflation rate quickened from 58.9 percent in August to 61.5 percent in September.

Monetary and fiscal policies will be used in the fight against inflation, according to the statement released after the Economy Coordination Board (ECB) meeting.

The board, chaired by Vice President Cevdet Yılmaz, convened on Oct. 30.

In line with market expectations, the Central Bank has increased its policy rate, the one-week repo auction rate, by 500 bps from 30 percent to 35 percent.

Since June, the bank has hiked the policy rate by 2,650 bps.

BELGRADE - According to the results of an Ipsos survey, the Serbian financial sector expects inflation to measure 6.7 pct in September 2024, which is the lowest level of one-year ahead expectations in the past year, the National Bank of Serbia (NBS) has said.

President Recep Tayyip Erdoğan has given his "full" support to the new economic policy, Treasury and Finance Minister Mehmet Şimşek has said.

Şimşek and Central Bank Governor Hafize Gaye Erkan met with journalists at a briefing on the government's new medium-term program in the capital Ankara.

The Central Bank raised its end-2023 inflation forecast to 58 percent from 22.3 percent in its previous report, its governor, Hafize Gaye Erkan, said on July 27, vowing to continue the bank's gradual monetary tightening.

Members of the Central Bank's Monetary Policy Committee will meet on July 20 to decide about its key interest rate.

At the MPC's June meeting, the policy rate - the one-week repo auction rate - was lifted from 8.5 percent to 15 percent. This was the first rate hike since March 2021.

Across the developed world, we are hearing the argument that high costs are "profit inflation," meaning that rising prices stem mainly from rising profit margins. This is confirmed by reputable economists at multinational banks like UBS and others, by the chief economist of the European Central Bank, Philip Lane, and by its president, Christine Lagarde.

Treasury and Finance Minister Mehmet Şimşek has revealed that the government's economy program will focus on three main factors with an aim to fight inflation and bring financial stability to the country.

BELGRADE - The National Bank of Serbia (NBS) Executive Board decided on Thursday to raise the key policy rate by 25 bp to 6.25 pct.

It also raised the deposit and lending facilities rates to 5 pct and 7.5 pct, respectively.