National Bank of Serbia Governor highlights maintaining the policy rate and dinar stability at International Monetary Fund European outlook meeting

The National Bank of Serbia published remarks by Governor Jorgovanka Tabaković from a meeting on the economic outlook for Europe, focused on Central and Eastern Europe, held in the context of the International Monetary Fund and World Bank Spring Meetings and Annual Meetings. The discussion centred on heightened global uncertainty, and Tabaković framed Serbia’s policy approach for a small, open economy as preserving macroeconomic and financial stability through sound, coordinated monetary and fiscal policies. Participants identified geopolitical tensions, energy price volatility, still-elevated inflation versus the pre-pandemic period, rising protectionism, and potential geopolitical regrouping and market fragmentation as key sources of risk. Policy discussions covered how to preserve medium-term inflation outcomes amid global commodity price volatility and how to maintain an adequate fiscal policy that both strengthens fiscal frameworks and supports growth. Tabaković pointed to cautious policy adjustments followed by maintaining the reference interest rate, alongside keeping the dinar’s exchange rate relatively stable against the euro and holding record foreign exchange reserves, as contributing to returning inflation to within the target limits and providing an anchor for macroeconomic stability.