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UPDATE 1 - Serbia's c-bank holds key repo rate at 2.5%

Author Radomir Ralev
UPDATE 1 - Serbia's c-bank holds key repo rate at 2.5% Photo: Srbija Danas/Sasa Dzambic

BELGRADE (Serbia), October 10 (SeeNews) - Serbia's central bank said on Thursday it decided to keep its key repo rate unchanged at 2.5%.

The central bank was guided by the medium-term inflation projection and the expected development of other macroeconomic indicators from the domestic and international environment, the central bank, NBS, said in a statement. 

"Low inflationary pressures are indicated by the core inflation, which remains low and stable, as well as the lower inflation expectations by the financial sector and the economy in the lower part of the target for one and two years ahead," the NBS said.

The inflation is expected to remain under control, the central bank noted.

Serbia's average consumer prices rose by 1.3% year-on-year in August, after growing by 1.6% in July, official statistics show. On a monthly comparison basis, Serbia's consumer price index (CPI) remained unchanged in August, after decreasing by 0.2% in July, according to figures published on the website of the national statistical office.

The central bank estimates that the impact of trade tensions and the potential effects of the policies of the world's leading economies on global trends causes uncertainty in the international financial and commodity markets.

However, the resilience of the Serbian economy to a potential negative impact from the international environment has increased, owing to improved macroeconomic indicators and prospects.

The central bank cut the key repo rate by 0.25 percentage pointя to 2.75% in July and to 2.5% in August to help guide inflation to the target band.

The NBS will hold its next rate-setting meeting on November 7.