Central bank cuts reference rate to five percent

The Executive Board of the National Bank of Serbia (NBS) decided on Thursday to reduce the key policy rate by half a percentage point to five percent.

Izvor: Tanjug

Thursday, 10.09.2015.

14:08

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(Tanjug, file)

Central bank cuts reference rate to five percent

Subdued inflationary pressures reflect in particular low international prices of primary commodities, low inflation abroad, relatively stable exchange rate of the dinar and the effects of fiscal consolidation at home, added the NBS.

In the coming period, inflation is expected to revolve around the lower bound of the target band (2.5 percent) in the coming period, possibly entering the target band in late 2015 or early 2016. Inflation is expected to trend closer to the four percent target from mid-2016, the NBS said.

The next rate setting meeting of the NBS Executive Board will be held on October 15.

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