Central bank announces latest decision regarding key policy rate
What level is it at now?
The National Bank of Serbia (NBS) Executive Board decided today to keep the key policy rate on hold, at 6.50%.
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It also did not change the deposit (5.25%) and lending facility (7.75%) rates.
The Board's decision to keep the key policy rate unchanged for the eighth month in a row was motivated by receding, though still elevated global inflationary pressures and the current medium-term inflation projection according to which inflation is expected to retreat within the NBS target band in mid-2024, the Serbian central bank said in a statement.
The Board also took into account the past increases in the key policy and required reserve rates, whose effects will continue to spill over to inflation, it added.
The pass-through of past monetary tightening on interest rates in the markets of money, loans and savings, and the fall in one-year-ahead financial and corporate sector inflation expectations signal the efficiency of the monetary policy transmission mechanism, the NBS said.
(Telegraf Biznis)