Wednesday, the National Bank of Serbia reduced its key policy rate by 100 basis points to 14%. This is the second rate cut in a month. On April 6, the central bank had cut the key policy rate by 150 basis points to 15%.

The consumer price index or CPI rose 9.4% year-over-year in March, slower than the 10.7% 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, slower than the 4.9% increase in the previous quarter.

The country's gross domestic product or GDP rose 5.4% annually in 2008, much weaker than the 6.9% expansion logged in 2007.

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