August 11 (SeeNews) - Serbia's central bank, NBS, said on Thursday it has decided to hold the key repo rate at 4.0%, in line with market expectations.
At its previous meeting, held last month, NBS cut the key repo rate by 0.25 percentage points to help inflation return to its target band of 2.5%-5.5% at the beginning of next year.
In its CEE Daily note from Thursday morning, Raiffeisen Research said that NBS would likely keep interest rates unchanged "as rapid strengthening of domestic economy and credit growth may also boost inflation in the medium-term".
Serbia’s annual consumer price inflation slowed to 0.3% in June from 0.7% in May, dipping further below the lower end of the central bank's target range, according to the latest available statistics office data.
The NBS will hold its next rate-setting meeting on September 8.