In particular, at current rates of inflation, the constraint imposed by the zero lower bound on nominal interest rates is too tight (the short-term real interest rate is too high, given the state of the economy), and the risk of deflation is higher than desirable.
5  NPL ratio (in %)  Gross NPL (RSD bn)  25  450 400 0.7  20  2.7  78.8  350  4.6  300 140.8  15  250  7.2  200  22.2  10  427.3 74.3  150  4.2  5.7  100  5  Stock at end of period  0.3 5.4  Reduction during period  0 Aug 31 2015  2015  2016  2017  2018  Stock at end of period  50 0  Jan - May 2019  Aug 31 2015  May 31 2019  125.0  Reduction during period 2015  2016  2017  2018  Jan - May 2019  May 31 2019  Source: NBS.