NBS reduces key policy rate to 2.75 pct

At its meeting on Thursday, the National Bank of Serbia (NBS) Executive Board voted to cut the key policy rate to 2.75 pct.

11 Jul 2019 14:21

BELGRADE - At its meeting on Thursday, the National Bank of Serbia (NBS) Executive Board voted to cut the key policy rate to 2.75 pct.

"Having analysed economic developments at home and abroad and prospects going forward, the Executive Board assessed that conditions have been met to cut the key policy rate to 2.75 pct, its new lowest level in the inflation targeting regime. The NBS thereby provides additional support to economic growth. Inflation has been kept firmly under control for the sixth year in a row. In accordance with the Executive Board’s announcements, in May it declined to 2.2 pct y-o-y.

As underscored by the Executive Board, inflation will continue to move within the target tolerance band, most probably in its lower part, until the end of this and in the course of next year. Subdued inflationary pressures are also confirmed by the still low and stable core inflation, as well as financial and corporate sector inflation expectations, which declined further in June and are currently below the target midpoint," the NBS said in a statement.

"The Executive Board stressed that the Serbian economy’s resilience to potential negative effects from the international environment has increased owing to the narrowing of internal and external imbalances and favourable macroeconomic prospects going forward," it also said.


Photo: Tanjug/S.Radovanovic, file

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