Serb c.bank leaves rates steady at 9.5 pct -source

...due to signs of an ongoing decline in core inflation, a central bank source said.

"With core inflation falling in July, there was nothing that could possibly justify a rate hike," a central bank source told Reuters after the monetary board meeting ended. "Risks remain the same, but obviously we still feel an impact of lower rates."

The bank last changed policy on May 29 when it cut the two-week repo rate by 50 basis points to 9.5 percent after preliminary figures indicated that core inflation -- its key concern -- would remain below a 4-8 percent target for 2007.