**Serbia’s Central Bank Keeps Key Policy Rate at 5.75 Percent**
The National Bank of Serbia (NBS) Executive Board decided on Friday to keep the key policy rate at 5.75 percent. This means that the rates for deposits and lending facilities will also remain at 4.5 percent and 7 percent, respectively.
The NBS cut the key policy rate by a total of 75 basis points in June 2024. Although inflation has returned within the target tolerance band, the Board said it’s necessary to keep a cautious monetary policy stance due to uncertainty in the international environment.
**Global Factors to Consider**
The National Bank of Serbia emphasized that global trends may impact the macroeconomic environment, trade flows, and supply chains. This could affect inflation, economic activity, and central banks’ monetary policies. The NBS pointed out that the unpredictable global situation may also impact energy and commodity prices.
Despite a flatline in global crude oil prices since mid-October, their future movement remains uncertain. Uncertainty also surrounds the movement of global gas prices due to Ukraine‘s ban on Russian gas transit. High prices for agricultural commodities, such as cocoa and coffee, are fueling concerns about world food prices.
**Next Meeting Scheduled**
The next rate-setting meeting where new inflation and growth projections will be considered is scheduled for 13 February.