NBS: Key policy rate to stay at 1.25%

At its meeting today, the NBS Executive Board voted to keep the key policy rate unchanged at 1.25%, the NBS (National Bank of Serbia) announced. The Executive Board expects that the timely taken economic policy measures will continue to exert a positive impact on financing conditions for corporates and households, and on their disposable income.

– A softer than initially anticipated fall in economic activity in Q2 and better performance in Q3 are largely owed to the well-timed and adequate support provided to the domestic economy by the NBS and the Serbian Government – the NBS says in the press release and adds that, having this in mind, it has revised the GDP growth projection for this year up from -1.5% to -1%, which “is likely to be one of the best outcomes in Europe”.

Positive trends in the face of the pandemic are strongly underpinned by the recovery in investment, which turned out faster than anticipated.

Narodna banka Srbije Beograd

NBS

key policy rate

GDP drop

inflation