NBS keeps key policy rate at 6.5 pct

BELGRADE - The National Bank of Serbia (NBS) Executive Board decided on Friday to keep the key policy rate on hold at 6.50 pct.

Interest rates on deposit and credit facilities were also kept unchanged at 5.25 pct and 7.75 pct, respectively.

"The Board’s decision is underpinned by the continued easing of global inflationary pressures and the established downward path of domestic inflation and its expected return within the target tolerance band over the monetary policy horizon.

The Board also took into account the fact that monetary conditions were tightened in the previous period through the main instrument - the interest rate, and in September also by increasing the reserve requirement ratio, with the full effects of these measures yet to be played out.

The transmission of past monetary tightening onto interest rates in the money, lending and savings markets signals the efficiency of the monetary policy transmission mechanism," the NBS said in a statement.