The Central Bank of Montenegro (CBCG) has stated that for now they don’t expect any significant rise in interest rates if the European Central Bank (ECB) doesn’t increase a baseline interest rate. In that case, the interest rate in Montenegro would go up by default.
“A large number of factors affect the level of interest rates, as well as the mutual influence of all these factors. On the supply side, these can be inflation, geopolitical risks, interest rates of funding sources – such as European Central Bank interest rates. When it comes to demand, the factors that may affect the level of interest rates are competition, cost reduction, economic recovery,” CBCG told the CdM portal when asked whether the inflation and war in Ukraine may cause the rise in interest rates in Montenegrin banks.
