Serbia's central bank said on Monday it decided to cut the key repo rate to 6.5% from 7%. The decision on the rate cut was made having in mind that inflation is currently below the target and that inflationary pressure is weak, the National Bank of Serbia (NBS) said in a statement.
The NBS is targeting inflation of 4% with a 1.5 percentage point variation band on either side in 2015.
At its session on Monday, the NBS executive board also decided to narrow the corridor of interest rates set in reference to the key policy rate from plus/minus 2.5% to plus/minus 2% in order to help stabilize interest rates in the interbank money market.
The central bank said in a statement the next rate-setting meeting of its executive board will be held on June 11.