Central banks keeps key policy rate at 9.5%

The Executive Board of the National Bank of Serbia (NBS) has decided to keep the reference interest rate at 9.5 percent annually. The central bank said on Thursday that the reference interest rate was kept at the same level because of inflation factors with medium-term effect, such as low demand, rising import prices, international risks and fiscal policy. Central banks keeps key policy rate at 9.5% The last change made to the reference interest rate was on Jan. 19, when it was lowered by 0.25 percent. The statement adds that in line with earlier NBS projections, year-on-year inflation in January returned to within the permitted target deviation range and came to 5.6 percent. Target inflation for January 2012 ranged from three to six percent. The continued fall in inflation is primarily a result of low demand and high monthly inflation rates in the same period last year. The lower boundary of the target range for March is 2.9 percent and 2.8 percent for April. Beta

Central banks keeps key policy rate at 9.5%

The last change made to the reference interest rate was on Jan. 19, when it was lowered by 0.25 percent.

The statement adds that in line with earlier NBS projections, year-on-year inflation in January returned to within the permitted target deviation range and came to 5.6 percent. Target inflation for January 2012 ranged from three to six percent.

The continued fall in inflation is primarily a result of low demand and high monthly inflation rates in the same period last year. The lower boundary of the target range for March is 2.9 percent and 2.8 percent for April.