April 7 (SeeNews) - Serbia's central bank (NBS) said on Thursday it has decided to hold the key repo rate at 4.25%, in line with market expectations.
The executive board of the bank noted in a statement that inflationary pressures remain low, while "the current degree of monetary expansion provides for a low and stable inflation in the medium term and a gradual recovery in economic activity".
The central bank expects inflation to accelerate slightly in the second half and return to its target band of 4% plus or minus 1.5 percentage points at year-end or the beginning of 2017.
The NBS will hold its next rate-setting meeting on May 17.