RTTNews - Monday, the National Bank of Serbia reduced its key policy rate by 100 basis points to 13%. Last month, the central bank had retained its key policy rate at 14%.

According to the Monetary Policy Committee, the tight fiscal measures are yet to produce results in terms of budget deficit reduction, and that fiscal policy will be a factor of disinflation in the period ahead.

The consumer price index rose 8.8% year-over-year in April, slower than the 9.4% increase in the previous month. The central bank aims to keep inflation between 6%-10% in 2009.

Serbia's economic growth eased sharply in the fourth quarter. Gross domestic product increased 2.8% on an annual basis, compared to the 4.9% increase in the previous quarter.

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