December 19 (SeeNews) - Serbia's central bank said it will keep its countercyclical capital buffer (CCyB) rate unchanged at 0%.
The financial cycle of Serbia is recovering and the introduction of a CCyB rate above 0% could constrain credit activity, the central bank said in a statement last week.
Nevertheless, the closing of the gap in some household lending segments requires certain measures to curb risks without jeopardising the overall lending activity.
Based on June 2018 data, the share of total loans in the gross domestic product amounted to 75.3%, while the estimated value of the deviation of this share was -12.9 percentage points.
The central bank said earlier this month it decided to keep its key repo rate unchanged at 3.0%, based on inflation projections for the coming period. Inflation in Serbia is expected to remain within the 1.5%-4.5% target band over the next two years, NBS said.