The National Bank of Serbia (NBS) said on Tuesday that its Executive Board decided to keep the key policy rate unchanged at 1.0 percent.
„The Executive Board was primarily aware that the effects of past monetary and fiscal policy measures are also to be expected in the period ahead, as well as that the third package of measures for corporates and citizens has been announced. This means that the monetary and fiscal policy measures will continue to exert a positive impact on financing conditions for corporates and households, and on their disposable income,” a press release said.
The NBS said that the country’s economy showed good results this year despite the pandemic according to available monthly indicators. “Output growth in manufacturing is particularly emphasized, and was facilitated by the activation of new production capacities thanks to prior investments, the undertaken monetary and fiscal policy measures, as well as the gradual recovery of external demand,” the press release said adding that agriculture and manufacturing lead the field in terms of exports and that retail trade trends are positive. “We expect to see recovery in other services sectors which are still considerably affected by the ongoing pandemic,” it said.
The NBS said that inflation is low and stable and y-o-y inflation in March stood at 1.8 percent as did core inflation.
The press release said that the next Executive Board meeting to decide on rate-setting will be held on May 13.