The National Bank of Serbia (NBS) Executive Board has raised the key policy rate by 50 bp to 4.5 pct, lifting the deposit and lending facility rates by the same amount, to 3.5 pct and 5.5 pct, respectively.

BELGRADE - The National Bank of Serbia (NBS) Executive Board has raised the key policy rate by 50 bp to 4.5 pct, lifting the deposit and lending facility rates by the same amount, to 3.5 pct and 5.5 pct, respectively.

"The continued rise in cost-push pressures and inflation, reflecting primarily import price growth, influenced the Executive Board’s decision to further raise the key policy rate and thus tighten domestic monetary conditions.

In making such decision, the NBS will contribute to limiting the second-round effects of rising prices through inflation expectations and will ensure that inflation strikes a downward path and returns with the bounds of the target tolerance band until the end of the projection horizon," the NBS said in a statement on Thursday.

The increase is the eighth in a row and the rate has been increased by a total of 350 bp since April this year, the NBS also said.