The National Bank of Serbia (NBS) raised its key policy rate to 2.75 percent, a press release said on Thursday.
“The NBS Executive Board decided at today’s meeting to raise the key policy rate by 25 base points to the level of 2.75 percent. The rates on credit facilities stand at 3.75 percent and the rate on deposit facilities at 1.75 percent,” the press release said.
It said that the decision was taken to maintain continuity in the current process of making monetary conditions stricter. “The NBS is continuing to react to inflationary pressure with the decision to raise the key policy rate …. The Executive Board leaves room to react by making monetary policy stricter and does not exclude the possibility of other more direct measure to react to inflationary pressure,” it said.
The press release said that the secondary effects of inflationary expectations need to be limited to make sure that inflation in Serbia starts dropping as of August.
The NBS Executive Board is scheduled to meet again on August 11.