NBS keeps key policy rate on hold

BELGRADE - The National Bank of Serbia (NBS) Executive Board decided on Thursday to keep the key policy rate at 5.75 pct.

The rates on deposit and lending facilities were also kept unchanged at 4.5 and 7.0 pct, respectively, the NBS said in a statement.

"In making the decision, the Board highlighted that the key policy rate has been cut by 75 bp in total since June and that the effects of past monetary policy easing will play out in the coming period as well," the central bank said.

"As underscored by the Board, although inflation has returned within the target tolerance band (3±1.5 pct) and continues to move therein, it is necessary to continue to pursue a cautious and restrictive monetary policy given somewhat greater resilience of inflationary pressures - notably core inflation, and in light of the unpredictable developments in the international environment...