Following the inflation stabilization at the end of the year, Executive Board of the National Bank of Serbia (NBS) decided to slow down the pace of rate hiking cycle, increasing the benchmark rate by 25bp to 5.25%.
While Fed and ECB are talking about rate hikes, markets concentrate on when first cuts might take place. For us, this is too much too early. In CEE final Q3 GDP results were as expected, Polish CPI surprised downwards. Next week, central bank decisions should yield no surprises.