The National Bank of Serbia (NBS) said on Thursday that it has decided to keep its key policy rate at 2.25 percent due to expected inflation trends and other macro-economic effects at home and abroad.
“Inflation is firmly under the control of NBS for the seventh year in a row and in December 2019 it was at the level of 1.9 percent (year-on-year). We expect low inflationary pressure in the coming period,” an NBS statement from the central bank Executive Board announced and added that inflationary expectations, which are within NBS limits, also indicate that the pressure will be low.
The NBS warned that in monetary policy caution is necessary with respect to international trends, the expansive monetary policies implemented by the FED and European Central Bank and oil prices. The Serbian economy’s resilience against possible negative effects from outside the country has been developed thanks to the full coordination in implementing economic policy measures and the high and adequate level of hard currency reserves.