National Bank of Serbia lowers key policy rate to 5.5%

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The decision to lower the key policy rate was taken in view of the disinflationary effect of the majority of domestic factors, low inflation abroad and the stability of inflation expectations within the target tolerance band.

It was concluded that external risks have lessened after Greece had reached an agreement with international creditors, which, along with Serbia’s arrangement with the IMF and the more favourable than expected economic and balance of payments performances, contributes to the relative stability of the foreign exchange market and improved investor perception.

The country’s macroeconomic outlook has improved also owing to the effects of fiscal consolidation which, at the same time, diminishes the exposure of the domestic economy to adverse external shocks, assessed the Executive Board.

The Executive Board also adopted the August Inflation Report that will be presented to the public on Wednesday, 19 August 2015.

The next rate-setting meeting of the Executive Board is scheduled for 10 September.