Central bank reduces key interest rate to 10 percent

BELGRADE The Executive Board of the National Bank of Serbia (NBS) has reduced the reference interest rate by 0.5 percentage points to ten percent. As the drop of inflationary pressures and expectations persists, NBS expects the inter-annual inflation rate in October to reach the lower limit of allowed deviation from the target rate. Central bank reduces key interest rate to 10 percent Since inflation is already rather low, NBS will use the measures of monetary policy to preserve inflation within target limits, the NBS Executive Board said. In addition to the monetary policy measures, the Executive Board stated that other factors contributing to the drop of the inter-annual inflation rate comprise the drop of prices of primary agricultural products, low demand and relative stability of the exchange rate caused by very favorable developments in terms of foreign exchange. Current account deficit in the third quarter of the year totaled 1.4 percent of the estimated GDP, in the conditions of higher economic activity. The expected effects of the fiscal consolidation and positive developments on the international financial markets will contribute to preserving the inter-annual inflation rate within the target limits in 2014, the NBS Executive Board stated. The National Bank of Serbia (Tanjug, file) Tanjug

Central bank reduces key interest rate to 10 percent

Since inflation is already rather low, NBS will use the measures of monetary policy to preserve inflation within target limits, the NBS Executive Board said.

In addition to the monetary policy measures, the Executive Board stated that other factors contributing to the drop of the inter-annual inflation rate comprise the drop of prices of primary agricultural products, low demand and relative stability of the exchange rate caused by very favorable developments in terms of foreign exchange.

Current account deficit in the third quarter of the year totaled 1.4 percent of the estimated GDP, in the conditions of higher economic activity.

The expected effects of the fiscal consolidation and positive developments on the international financial markets will contribute to preserving the inter-annual inflation rate within the target limits in 2014, the NBS Executive Board stated.