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Serbia's c-bank keeps CCyB rate unchanged at 0%

Author Radomir Ralev
Serbia's c-bank keeps CCyB rate unchanged at 0% Photo: Srbija Danas/Sasa Dzambic

BELGRADE (Serbia), September 18 (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 Tuesday.

Nevertheless, the closing of the gap in some household lending segments suggests the presence of certain risks. Based on June 2019 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 -6.7 percentage points.

The central bank said last week it decided to keep its key repo rate unchanged at 2.5%, based on inflation projections for the coming period. Serbia's average consumer prices rose by 1.6% year-on-year in July, after growing by 1.5% in June, according to the latest official data available. On a monthly comparison basis, Serbia's consumer price index (CPI) fell by 0.2% in July, after decreasing by 0.3% in June.