NBS: Key Policy Rate Kept at 6.5%

At its meeting today, the NBS Executive Board decided to keep the key policy rate on hold, at 6.50%. It did not change the rates on deposit (5.25%) and lending facilities (7.75%) either, announced the Cabinet of the Governor of the National Bank of Serbia (NBS).

As explained, the Board’s decision was motivated by the further easing of global inflationary pressures, the established downward trajectory of inflation at home and its expected return within the target band in mid-2024.

– Moreover, monetary conditions in the past period were tightened by means of the main instrument – the interest rate, and in September by increasing the required reserve ratio, with the full effects of these measures yet to play out. The transmission of past monetary tightening onto the interest rates in the money, lending and savings markets signals the effectiveness of the monetary policy transmission mechanism – the press release says.

Narodna banka Srbije Beograd

National Bank of Serbia

NBS

key policy rate

rates on deposit rates on lending facilities