The National Bank of Serbia left its key policy rate unchanged at 4.0%, saying inflation pressures are still low.

The central bank said inflation has been within its target tolerance band of 3.0% plus/minus 1.5 percentage points since the start of 2017 and is expected to remain there in the period ahead.

The bank said: "The high base from the prices of petroleum products will exert a drag on inflation while, as of early 2018, this year's one-off price hikes of certain products and services will drop out of the year-on-year comparison pushing inflation below the current level.

"A gradual increase in the global prices of primary agricultural commodities and aggregate demand in Serbia will work in the opposite direction."