NBS keeps key policy rate at 5.75 pct

BELGRADE - The National Bank of Serbia (NBS) Executive Board decided on Friday to keep the key policy rate on hold at 5.75 pct, and the deposit and lending facility rates also remained unchanged at 4.5 pct and 7.0 pct, respectively.

"When making the decision, the Board noted that, though inflation retreated significantly and is moving within target bounds, a cautious momentary policy should still be pursued," the NBS said in a statement.

"Inflation at home greatly depends on developments in global commodity and financial markets which are currently highly volatile amid uncertainty related to trade policies of leading global economies.

Estimates prevail that, in such circumstances, global inflation will probably recede at a slightly slower-than-expected pace, while economic growth will be subdued due to disruptions in trade flows, production chains and weakness in key drivers of growth such as foreign trade, investment and consumption," it also said.