NBS raises key policy rate to 5.5 pct

BELGRADE - The National Bank of Serbia (NBS) Executive Board decided on Thursday to raise the key policy rate by 25 bp to 5.5 pct.

The rates on deposit and credit facilities were raised by the same amount, to 4.5 pct and 6.5 pct, respectively, the central bank said in a statement.

"In its decision-making, the Board was guided by the persistently high global cost-push pressures, despite the signs of easing, and the necessity to contain their second-round effects on price growth at home through inflation expectations and to impact a part of demand-side pressures.

The NBS thus helps inflation to strike a downward path and retreat within the target tolerance band until the end of the projection horizon. Today’s hike is the eleventh in a row – since April 2022, the rate has been raised by 450 bp in total," the NBS also said.