Serbia’s central bank held its benchmark interest rate at an eight-year peak of 6.5%. Preliminary data indicates a deceleration in inflation to 12.5% in July, compared to 13.7% in the prior month. The bank projects inflation to further taper off to around 8% by year-end, although president Vucic has provided a slightly higher estimate of 9%. The official inflation figures for July are set to be released soon. Compounding the central bank’s challenges is the upward pressure on the Serbian dinar, prompting market interventions to stabilize the currency against the euro. The bank reported purchases exceeding EUR 2.4 bln in the domestic currency market during the first seven months of this year.