September 30 (SeeNews) - Serbia's central bank, NBS, may cut further its repo rate at the upcoming rate-setting meeting in October if the dinar appreciation tensions continue, Erste Group said on Monday.
"If tensions continue to mount, risks of another monetary easing (already at the next meeting, due in two weeks) would increase," Erste Group said in a market outlook report.
The central bank resorted to interventions on the monetary market in clear evidence of the intensifying pressure on the dinar towards appreciation, the Austria-based banking group said.
Serbia's central bank decided to keep its key repo rate unchanged at 2.5% at the latest rate-setting meeting on September 12. The central bank cut the key repo rate by 0.25 of a percentage point to 2.75% in July and to 2.5% in August to help guide inflation to the target band.
The NBS will hold its next rate-setting meeting on October 10.