BELGRADE (Reuters) - The Serbian central bank is expected to keep its benchmark interest rate, the highest in the region, unchanged at 3 percent next week against a backdrop of a strong currency, stable economic growth and low inflation, a Reuters poll showed.
Ten out of 12 analysts and traders polled this week and last forecast the bank's executive board would leave borrowing costs unchanged on April 9.
Two said the bank would cut rates by a minimal 25 basis points to bolster lending and growth.
The central bank kept rates unchanged last month, citing low inflation, a stable dinar currency, movements in commodity prices, and the rate policies of the U.S. Federal Reserve and European Central Bank.
The bank last cut rates in April 2018, by 25 basis points.
Serbia's economy is set to grow 3.5 percent this year, down from 4.4 percent in 2018.
Inflation stood at 2.4 percent in February, from 2.1 percent a month earlier and inside central bank's target of 3 percent, give or take 1.5 percentage points. The statistics office will announce March inflation data on April 12.
Most analysts said the central bank of the European Union candidate country, beset by weekly opposition protests and tensions with neighboring Kosovo, would want to keep its benchmark rates high to assure emerging market investors.
The dinar has risen against the euro since the start of April and the central bank, which keeps the currency in a managed range, has purchased more than 185 million euros ($208 million) to stem its gains.
($1 = 0.8906 euros)