(Adds market reaction, central bank intervention)
BELGRADE, Feb 12 (Reuters) - Serbia's central bank left its key policy rate on hold on Thursday and changed rules to boost liquidity and bank lending, sending the dinar one percent lower for the day and prompting intervention to slow its decline.
It sold 33.9 million euros at 93.60 dinars in a fixing session after traders reported deals at levels past 94.00/euro.
Earlier, the bank announced a change in mandatory reserves and loan-to-capital ratios, encouraging banks to expand credit activity and boost economic growth.
According to the new rules, banks will no longer need to set aside reserves for loans to corporate clients granted under a 1.2 billion euro government-led stimulus plan.
"Considering the circumstances in global financial markets and possible impact on the domestic financial system...the National Bank has decided to support with its measures and through reserve requirements lending activity to companies in line with the government's programme," its statement said.
Reserve requirements will not be calculated on dinar and hard currency deposits and credits received from abroad between Oct. 1, 2008 and Dec. 31, 2009.
Mandatory reserves on commercial banks' credit portfolios will be reduced for the amount of loans granted to corporates for investments and to households for the purchase of "Made in Serbia" consumer durables.
The bank also said the household loan-to-capital ratio was changed to 200 percent from 150 percent, expanding room for banks to lend to the retail sector.
Lending to households will be relaxed and retail clients will not be required to deposit 30 percent against new loans.
Bankers said the new relaxation of rules meant less need to sell euros to obtain dinar liquidity, a move which could set the dinar on a downward path. "The change in household loan-to-capital ratio also means that banks will not have to boost their capital to adjust to those ratios," a senior treasury analyst said. "It seems the dinar is up for more gradual downward moves."
The dinar has lost 25 percent since October on investor flight from east European assets. The central bank has sold more than 1.5 billion euros to slow the currency's declines.
Along with a hike in regulated prices, which led retail price inflation to 3.0 percent month-on-month in January, the weaker dinar is also believed to have contributed to higher prices. (Reporting by Gordana Filipovic; Editing by Adam Tanner/Stephen Nisbet)