NBS Raises Key Policy Rate to 3%

At its meeting today, the NBS Executive Board voted to raise the key policy rate by 25 bp to 3%.

As said on the website of the National Bank of Serbia (NBS), at the same time, the lending facility rate now equals 4% and the deposit facility rate 2%, meaning that the entire interest rates corridor was increased by 25 bp.

In making such decision, the Executive Board maintains the continuity of moderate monetary policy tightening, whereby it adequately responds to heightened inflationary pressures without jeopardizing further growth in economic activity.

– As of October 2021, the NBS has gradually and continuously tightened monetary conditions at home by using different tools, depending on the estimated character of inflationary pressures. In addition to lifting main interest rates and tightening dinar liquidity conditions, the NBS significantly contributes to limiting the effects of the spillover of imported price growth onto domestic prices by maintaining the relative stability of the RSD/EUR exchange rate – says the press release of the NBS.

Narodna banka Srbije Beograd

National Bank of Serbia

NBS

NBS Executive Board

raising key policy rate

lending facility rate

deposit facility rate

inflation

monetary policy tightening