NBS cuts key policy rate to 6.25 pct

BELGRADE - The National Bank of Serbia (NBS) Executive Board decided on Thursday to trim the key policy rate to 6.25 pct and the rates on deposit and lending facilities were also lowered to 5.00 pct and 7.50 pct, respectively.

"The Board's decision was motivated primarily by several months of declining inflation at home and its return to within the target band in May, consistent with the NBS's projections, as well as by the anticipated movements in inflation and other macroeconomic indicators at home and abroad in the coming period. In view of the further waning of global inflationary pressures and the disinflationary impact of tight monetary measures so far, the Executive Board assessed that conditions are in place to embark on monetary policy easing by lowering the key policy rate," the NBS said in a statement.

"Global inflation has continued to subside and...