For the second time in two months...Serbia's central bank cut its benchmark interest rate... the second highest in Europe...by 25 bps...to 11.75%.
It said inflation had eased...while domestic demand remained weak.
Serbia's core inflation rose to 13.8% in May...the highest since July 2008.
This move is opposite the region's general economic tide.
Central banks in Russia, Poland and Sweden have been raising interest rates to stop inflation.