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

Though rising, the estimated credit-to-GDP gap is still below its long-term trend, the central bank said in a statement on Tuesday.

Therefore, 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 76.0%, while the estimated value of the deviation of this share was -6.3 percentage points.

The central bank said last week it decided to hold its key repo rate at 2.25%, based on the inflation outlook and macroeconomic indicators from the domestic and international environment. Serbia's average consumer prices rose by 1.5% year-on-year in November, after growing by 1.0% in October, official statistics show.