rates, in % ) ( y - o - y rates, in % ) current inflation financial sector * corporate sector * financial sector - bloomberg - 2 12 3 12 3 source : nbs. 12 3 12 3 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 sources : gallup, ipsos / ninamedia, bloomberg and nbs. * ipsos and gallup until december 2014, ninamedia since december 2014, and ipsos since january 2018. our decision to keep the key policy rate unchanged at 6. 5 % in the period since the previous report was underpinned by the projected inflation movements and the transmission of the effects of past monetary tightening to interest rates in the money, lending and savings markets, as well as to inflation expectations. from this time distance, taking into account movements in key macroeconomic indicators, we may freely say that it is thanks to our monetary policy, which we tightened at a continuous, but moderate and measured pace, that a concurrent reduction of inflationary pressures and inflation ’ s return within the target band over the monetary policy horizon were achieved. the negative effects on economic growth were minimised and the financial stability fully preserved. this is confirmed by the fact that the share of npls in total loans has remained at its historical low of around 3 %, underpinned by a robust regulatory framework and a carefully designed mix of monetary and macroprudential policy measures. a good example of such policy is our september decision to cap the interest rate on variable - rate housing loans at 4. 08 % for first - time home buyers. this decision has had no major impact on the banks ’ financial result and does not fuel inflationary pressures, but it has helped alleviate the credit risk and preserve financial stability, and, to an extent, supported the recovery of personal consumption. 3 of 9 chart 5 movement in the key policy rate and average repo rate chart 6 npl level and share in total loans, gross principle ( in rsd bn ) ( in % ) ( daily data, p. a., in % ) household sector corporate sector other sectors npl share in total loans ( rhs ) key policy rate lending facilities rate deposit facilities rate average repo rate 1 / 2020 7 / 2020 1 / 2021 7 / 2021 1 / 2022 7 / 2022 1 / 2023 7 / 2023 1 / 2024 source : nbs. source : nbs. that we have managed to achieve the so -

of course, ensure that the products and services are continually upgraded. more importantly, risks will be dispersed across many units and not bundled in just one basket. the need to regulate and monitor the operations of multiple entities will be an important challenge for central banks. third, market dynamics will ensure operational efficiency especially when volumes are substantial. a case in point is the indian mobile telephone industry. when they were first introduced about a decade ago, the average cost of a mobile phone call used to be rs. 24 per minute ( roughly half a us dollar ) and that used to be charged on both the caller and the call receiver. today, india boasts of some of the world ’ s lowest per call rate – most local calls are charged only to the caller, and the per call rate is just re. 0. 50 paise per minute ( just about one us cent ). a reduction of as much as one - fiftieth in the original call charges in so short a span of time calls for revisiting the moore ’ s law! an encore of similar dramatic reduction in costs in the retail payment systems is not beyond the realm of possibility. a beginning has already been made in the area of atm - based payments whereby no charges will be levied on customers for use of atms not belonging to their own bank, from april, 2009. fourth, as retail payments go into large - scale expansion, new issues will emerge. the demarcating line between the large - value and the retail - payment systems is getting blurred. this calls for increased efforts to set up bench marks even for retail payment systems. considering the risks inherent in such systems, fresh initiatives are needed to address customer - protection issues. these assume greater importance in the context of the increasing spread of the concept of branchless banking. by all indications, retail payments are going to be the drivers of the future payment and settlement architecture. the reserve bank will take proactive steps towards their operationalisation but within a regulatory framework that will mitigate the risks. my staff have advised me that they already have a cryptology for risk management – risk, which would take into account the following : r – recognition – to identify any risk early on and take proactive steps before it gets out of hand ; i – improvisation – of new methods, techniques and tools to secure better monitoring, and providing for a feed - forward rather than a feed - back system ; s – segmentation – to address smaller systems and sub - systems individually so as