NBS: Key policy rate cut to 6%

At its meeting today, the NBS Executive Board voted for further monetary easing, cutting the key policy rate by 25 bp to 6%, and deposit and lending facility rates to 4.75% and 7.25%, respectively, announced the National Bank of Serbia (NBS).

– In making the decision, the Board had in mind that inflation at home has been on a downward path for a number of months and that it returned within the target band in May, as projected by the NBS. It also took into account the expected movement of inflation and other macroeconomic indicators from the domestic and international environment going forward. Given a further reduction in global inflationary pressures and the hitherto disinflationary impact of restrictive monetary measures, the Board assessed that conditions are in place to continue to ease monetary policy by trimming the key policy rate – the NBS points out in its press release.

It is added that, though somewhat more gradually than previously expected, global inflation continues to slow down.

The next rate-setting meeting will be held on August 8.

Narodna banka Srbije Beograd

Republički zavod za statistiku

National Bank of Serbia

NBS

Statistical Office of the Republic of Serbia

European Central Bank

Federal Reserves System

key policy rate

gross domestic product