BELGRADE, Nov 5 (Reuters) - Serbia's central bank cut its main interest rate by 100 basis points to 10 percent on Thursday, in line with a pledge by Governor Radovan Jelasic to ease monetary policy on an improved outlook for inflation.

Analysts in a Reuters poll earlier this week had erred on the side of a hold by the bank, but it was a close call and Serbia on Wednesday got a boost from the IMF's preliminary approval for the release of more of its agreed aid.

The cut in the two-week repo rate was the bank's seventh move on rates in 2009. It last cut the repo rate on Oct. 8, citing tame price pressures and the stable dinar .

Jelasic will explain the decision at a 1000 GMT news conference. The dinar was little changed after the decision.

On Wednesday, Jelasic pledged lower rates and relaxed reserve requirement rules, with the IMF also pointing to positive signs on prices. A year from now, the fund saw inflation within a 4-8 percent range, down from 6-10 percent in 2009.

But Serbia and the dinar have still had a bumpy ride since last year's financial turmoil stemmed flows of investment and financing to the developing Balkan economy, and the bank is also being careful not to let demand recover too fast.

(Reporting by Gordana Filipovic; editing by Patrick Graham) Keywords: SERBIA RATES/

(gordana.filipovic@thomsonreuters.com; +381 11 3044 914; Reuters Messaging: gordana.filipovic.reuters.com@reuters.net)

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