NBS increases key policy rate to 6.25 pct

BELGRADE - The National Bank of Serbia (NBS) Executive Board decided on Thursday to raise the key policy rate by 25 bp to 6.25 pct.

It also raised the deposit and lending facilities rates to 5 pct and 7.5 pct, respectively.

"In making the decision, the Executive Board concluded it is necessary to continue to moderately tighten monetary conditions to pre-empt a surge in inflation expectations and make sure that inflation strikes a downward path and returns within the target tolerance band in the projection horizon," the central bank said in a statement.