Serbian central bank suspends repo auction on October 7
BELGRADE (Serbia), Sept. 16 (SeeNews) – Serbia’s central bank, SNB, plans to halt regular weekly repo auctions from October 7 because banks no longer need additional liquidity, said he declared.
The auctions, introduced in November 2020 and conducted on Thursdays, hit their mark as they supported banks in a situation of uncertainty and tense economic activity caused by the coronavirus crisis, the central bank said in a statement on Wednesday. .
“The liquidity of the Serbian banking sector is high and it is estimated that under the current circumstances the standing facilities of the SNB for the provision of additional liquidity are no longer necessary,” said the SNB.
The withdrawal of the additional liquidity creation tool is seen as an appropriate response to rising inflation to the upper end of the target range of 1.5% to 4.5% in August, explained the central bank.
Consumer prices in Serbia rose 4.3% year-on-year in August, driven by temporary factors, which was also confirmed by stable core inflation of 1.8%, the SNB added.
Three more repo auctions will take place in September, providing liquidity in dinars for a period of three months.