Interest Rates for Dinar and FX Corporate Loans Equalized
The National Bank of Serbia (NBS) says that the trend of the two interest rates getting closer together has been apparent for a long time now.
– The interest rates for dinar loans have dropped largely thanks to the easing of the monetary policy of the NBS, but also the total macroeconomic stability in the country, primarily the low and stable inflation, which in the past seven years has been at an average of 2%. Since May 2013, when the cycling of the easing of the monetary policy started, the key policy rate has dropped by 10.5 percentage points from 11.75% in May 2013 to 1.25%, which is the lowest it's ever been in the inflation targeting regime. This has reflected on retail and corporate loan interest rates, which are now 13 percentage points lower than in May 2013 – the central bank says.
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