NBS: Key policy rate kept on hold
At its meeting yesterday, the NBS Executive Board voted to keep the key policy rate at 2.5%. In making the decision, the Executive Board was guided primarily by the August medium-term inflation projection and the expected movement in other macroeconomic indicators from the domestic and international environment in the coming period, and the need to fully analyse the effects of past monetary policy easing. According to the August medium-term inflation projection as well, inflation will be kept firmly under control, as in the previous years. The Executive Board reminds that, consistent with expectations, y-o-y inflation slowed down as of May, reflecting the reduced contribution of fruit and vegetable prices in the new agricultural season.
SORS: Annual inflation in august at 1.3%
Prices of goods and services used for personal consumption in August 2019 in relation to July 2019 remained at the same level on average, SORS reported. Consumer prices in August 2019, increased by 1.3% in relation to August 2018. In August 2019, in relation to December 2018, consumer prices increased by 1.5% on average, the same report says.
Agreement worth EUR 100 million signed with EIB on construction of Nis-Merdare highway
The financial agreement on the construction of the E-80 Nis-Merdare highway, worth EUR 100 million, has been signed by the Minister of Construction, Transport and Infrastructure of Serbia, Zorana Mihajlovic, and the director of the sector for Italy, Malta, Slovenia, Croatia and the Western Balkans at the European Investment Bank (EIB), Miguel Morgado. Another agreement was signed at the Government of Serbia, pertaining to an investment grant of EUR 40.6 million from the Western Balkans Investment Framework (WBIF). It was signed by Mihajlovic, Morgado, the Minister for European Integration of Serbia, Jadranka Joksimovic, and the assistant director of the Corridors of Serbia, Dusan Puric. Minister Mihajlovic announced that the construction of the first section of the highway, from Nis to Plocnik, will begin in the third quarter of the next year.
Dow posts 7-day winning streak, inches closer to record after tariff delay and ECB rate cut; European stocks close higher as ECB launches new stimulus plan
Stocks rose on Thursday, approaching record levels, as Wall Street digested a slew of U.S.-China trade news along with a large bond buying program from Europe’s central bank. The Dow Jones Industrial Average closed 45.41 higher, or 0.2% at 27,182.45, posting a seven-day winning streak. The S&P 500 gained 0.3% to 3,009.57 to notch its third straight gain. The Nasdaq Composite advanced 0.3% to 8,194.47.
President Donald Trump agreed on Wednesday to delay an additional increase in tariffs on Chinese goods by two weeks “as a gesture of good will.” The move raised hopes of a thaw in trade frictions between the world’s two largest economies.
European stocks closed higher on average Thursday after the European Central Bank (ECB) announced a massive new bond-buying program Thursday and the United States offered hints that it would ease tariffs against Chinese imports. By the close of play, the European Stoxx 600 had risen by two tenths of one percent.
The ECB’s quantitative easing program will entail 20 billion euros per month of asset purchases for as long as it deems necessary. President Mario Draghi also announced that the central bank would cut its main deposit rate by 10 basis points to -0.5%, in line with expectations.
AB InBev climbed 3.1% after confirming that it is continuing to explore an IPO for its Asia Pacific business on the Hong Kong Stock Exchange.