NBS keeps key policy rate at 5.75 pct

BELGRADE - The National Bank of Serbia (NBS) Executive Board decided on Thursday to keep the key policy rate at 5.75 pct, as well as the rates on deposit and lending facilities - at 4.5 pct and 7.0 pct, respectively.

"In making the decision, the Board highlighted that the key policy rate was trimmed on three occasions in 2024, by 25 bp each time, and has stood at 5.75 pct since September, with the effects of these cuts expected to play out in the coming period as well," the central bank said in a statement.

"As stated by the Board, despite a significant decline in inflation and its stabilisation, it is necessary to continue to exercise a cautious monetary policy stance, given the ongoing geopolitical tensions, growing protectionism, and trade policy uncertainty globally.

Caution is also needed in light of the uncertainties concerning the global prices of energy and other primary commodities, as well as the prices of some food raw materials, particularly coffee and cocoa, which have recently touched their record highs on global exchanges," the NBS also said.