NBS keeps key policy rate at 9.5 percent

NBS keeps key policy rate at 9.5 percent

"Despite significant narrowing of external imbalances, aided mainly by rising exports, the need for external sources of financing persists," the release reads, adding that the NBS expects that the consistent implementation of fiscal consolidation measures will help strengthen the resilience of the Serbian economy to the adverse effects that developments in international financial markets might bring about.

The Executive Board also concluded that demand-side and cost-push inflationary pressures have lessened significantly, while inflation expectations have stabilized within the target tolerance band.