NBS keeps key policy rate at 6.50 pct

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

The rates on deposit and lending facilities also remained unchanged at 5.25 pct and 7.75 pct, respectively, the NBS said in a statement.

"The decision was motivated by further dissipation of global inflationary pressures, the downward trajectory of inflation at home and its expected return to within the target tolerance band by mid-2024.

As the key policy rate and required reserve ratios were already lifted in the prior period, the relevant effects will continue to impact inflation going forward.

The pass-through of past monetary tightening to the rates in the money, lending and savings markets, and subsiding one-year ahead inflation expectations of the financial and corporate sectors signal the efficiency of the monetary policy transmission mechanism," the central bank said.