NBS key policy rate kept on hold at 6.5 pct

BELGRADE - The National Bank of Serbia (NBS) Executive Board decided on Thursday to keep the key policy rate on hold at 6.50 pct and the rates on deposit (5.25 pct) and lending (7.75 pct) facilities were also kept unchanged.

"The Board's decision to keep the key policy rate on hold for the ninth consecutive month was motivated by the declining, though still elevated global inflationary pressures, the current medium-term inflation projection, and global uncertainty over energy and primary commodity prices," the NBS said in a statement.

"The Board also took into account the past hikes in the key policy rate and required reserve ratios, and the continued impact of their effects on inflation.

The pass-through of hitherto monetary tightening on interest rates in the money, lending and savings market, and a fall in inflation expectations, signal the efficiency of...