Central bank cuts key policy rate to 11%

BELGRADE At its meeting on Thursday, the National Bank of Serbia's (NBS) Executive Board decided to cut the key policy rate by 0.25 percentage points to 11%. The decision is based on the assessment that y-o-y inflation and inflationary pressures will continue to subside over the coming months, which is expected to be confirmed by the monthly inflation rate in May, the bank said. Central bank cuts key policy rate to 11% According to the NBS, the fall in year-on-year inflation will be sustained by the monetary policy measures taken thus far, lower food prices in the new agricultural season, low aggregate demand and additional fiscal consolidation measures that will eliminate uncertainty with regard to the future economic policy. In the best collective judgment of the Executive Board, y-o-y inflation will return within the target tolerance band of 4±1.5% by October. Given the narrowing of the foreign trade and current account deficits, the Executive Board attributed current developments in the foreign exchange market to trends in international financial markets and greater investor risk aversion. The Executive Board concluded that results of fiscal consolidation and its effects on monetary policy and future NBS measures will depend on concrete measures, the dynamics of their adoption and comprehensiveness of reforms in the field of public finance. Tanjug

Central bank cuts key policy rate to 11%

According to the NBS, the fall in year-on-year inflation will be sustained by the monetary policy measures taken thus far, lower food prices in the new agricultural season, low aggregate demand and additional fiscal consolidation measures that will eliminate uncertainty with regard to the future economic policy.

In the best collective judgment of the Executive Board, y-o-y inflation will return within the target tolerance band of 4±1.5% by October.

Given the narrowing of the foreign trade and current account deficits, the Executive Board attributed current developments in the foreign exchange market to trends in international financial markets and greater investor risk aversion.

The Executive Board concluded that results of fiscal consolidation and its effects on monetary policy and future NBS measures will depend on concrete measures, the dynamics of their adoption and comprehensiveness of reforms in the field of public finance.