NBS raises key policy rate to 5 pct

BELGRADE - The National Bank of Serbia (NBS) Executive Board decided on Thursday to raise the key policy rate by 50 bp to 5 pct.

It raised by the same amount the rate on deposit facilities - to 4 pct, and the rate on lending facilities - to 6 pct.

"By making this decision, the NBS continues to tighten monetary conditions and contain the second-round effects of rising prices through inflation expectations, thus aiding inflation in Serbia to strike a downward trajectory and return within the target tolerance band until the end of the projection horizon," the central bank said in a statement.

The key policy rate increase is the ninth in a row - since April 2022, it has been raised by a total 400 bp, it also said.