Serbia’s central bank decided to increase its key repo rate by 25 basis points to 6.25% to counter inflationary pressures, it said on Thursday.

The central bank also raised both the deposit facility rate and the lending facility rate by 25 basis points, to 5% and 7.5%, respectively, it said in a statement.

It is necessary to continue with further tightening of monetary policy, so that inflationary expectations do not rise and to ensure that inflation finds itself on a downward path, the National Bank of Serbia (NBS) noted.

The latest data published by the national statistical office showed that Serbia’s inflation eased to 15.1% year-on-year in April, after rising by an annual 16.2% the month before.

The central bank will hold its next rate-setting meeting on July 13.

Source: SeeNews, Momentum