The National Bank of Serbia (NBS) decided on Thursday to preserve the key policy rate at the current level of 4.5 percent.
The NBS Executive Board took into account the expected effects of key policy rate reductions until now and the gradual rate reduction for mandatory foreign currency reserves relative to inflation fluctuations in the forthcoming period, as well as persevering external risks.
The increase of resistance of the local economy to risks from the international environment is also due to the effects of fiscal consolidation measures, more favorable economic growth prospects than originally anticipated, reduction of external imbalance and consistent implementation of the arrangement with the IMF, the Executive Board stated.
Source; B92
