At its meeting today, the National Bank of Serbia (NBS) Executive Board voted to keep the key policy rate at 3%, the bank announced.
Inflationary pressures remained low even in conditions of strong economic growth. Inflation continued to move within the target tolerance band, measuring 2.1% in September.
The Executive Board estimates that the effects of the past monetary policy easing have contributed to the acceleration of economic growth, which in the year to date posted the highest rate in the past ten years – 4.5% year-on-year.
– A high impetus to growth came from investment, which will continue to spur manufacturing exports in the coming period. Investment growth is supported by favorable financing conditions and a rise in lending – the central bank said.
It is added that the net inflow of foreign direct investment, which more than fully covers the current account deficit, reflects positively on export growth and narrows external imbalances in the medium-term.
The Executive Board judges that caution in monetary policy conduct is still mandated, primarily because of developments in the international environment.
At its meeting today, the NBS Executive Board adopted the November Inflation Report, which will be presented to the public on November 16. The next rate-setting meeting will be held on December 6.