4  BIS Review 42/2003  that current or future short-term interest rates (also measured in real, or inflation-adjusted, terms) are likely to be higher than previously expected should depress the stock price. There are two essentially equivalent ways of understanding why expectations of higher short-term real interest rates should lower stock prices.
I would like to underline how important it is for a country like Serbia, as for any other advanced or emerging economy, to pursue sound fiscal policies.