NBS Raises Key Policy Rate to 4.5%

At its meeting on November 10, the National Bank of Serbia (NBS) Executive Board voted to raise the key policy rate by 50 bp, to 4.5%.

It lifted the deposit and lending facility rates by the same amount, to 3.5% and 5.5%, respectively.

The continued rise in cost-push pressures and inflation, reflecting primarily import price growth, influenced the Executive Board’s decision to further raise the key policy rate and thus tighten domestic monetary conditions, says the announcement by the Cabinet of the Governor of the NBS.

It is clarified that, in making such decision, the NBS will contribute to limiting the second-round effects of rising prices through inflation expectations and will ensure that inflation strikes a downward path and returns with the bounds of the target tolerance band until the end of the projection horizon.

This rate hike is the eighth in a row – the rate has been increased by total 350 bp as of April this year.

Narodna banka Srbije Beograd

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