June 11 (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 on Monday.
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 March 2019 data, the share of total loans in the gross domestic product amounted to 73.3%, while the estimated value of the deviation of this share was -8.4 percentage points.
The central bank said last week it decided to keep its key repo rate unchanged at 3.0%, based on inflation projections for the coming period. Inflation is expected to embark on a downward path from May onwards, moving close to the lower bound of the 1.5%-4.5% target band in the first half of 2020 and heading steadily back towards the target midpoint in the period thereafter, NBS said.