BELGRADE, May 24 (Reuters) - Serbia’s central bank on Tuesday revised the country’s 2016 growth to between 2.25 and 2.5 percent from 1.8 percent, citing an increase in investment and a rise in exports.
In its quarterly report on inflation, the bank said higher investment would be driven by implementation of major infrastructure projects, lower interest rates and low fuel prices.
The bank said it expected its monetary policy to remain “expansionary” in the coming period due to low inflationary pressure. Inflation in Serbia stood at 0.4 percent in April, way below the central bank’s target range of between 2.5 and 5.5 percent.
But the bank refrained from a rate cut last week due to the possibility of a U.S. rate hike, which would make emerging markets such as Serbia relatively less attractive.
Reporting by Ivana Sekularac; editing by Giles Elgood