Seven of 13 analysts and traders polled by Reuters between Dec. 1 and 12 expected the central bank to raise rates at Friday’s policy meeting, to between 11% and 11.5%, while five saw the rate on hold. Just one said the bank would opt for a cut, of five basis points.
A jump in headline inflation prompted the central bank to raise rates by 20 basis points last month despite a contracting economy, and as its emerging European peers are cutting borrowing costs to support growth. Monthly inflation was unchanged in November, and fell from 12.9% to 11.9% compared with a year earlier, but the bank sees it rising again over the next six months.
Source Balkans
