Serbia's central bank raised its benchmark interest rate on Thursday by 25 basis points to 5.75 % to counter rising inflation.
In a statement, the bank's Executive Board said that despite signs of easing, "global cost pressures and imported inflation" remain high.
"Global cost pressures and imported inflation are still high and it is necessary to limit their indirect effects on price growth on the domestic market," the bank said.
Serbia's inflation in January stood at 15.8%. The Statistics Office is scheduled to release February inflation data on March 13.
Five out of eight analysts and traders polled by Reuters this week and last had said they expected the bank to raise interest rates to 5.75%. One saw a 50% basis points rise and two expected rates to remain unchanged. (Reporting by Aleksandar Vasovic; Editing by Toby Chopra)