Central bank announces latest decision regarding key policy rate

Photo: Nikola Andjic

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)