The National Bank of Serbia Executive Board held the key policy rate at 5.75% on October 8, citing the inflation outlook and heightened external risks, while expecting economic growth to accelerate next year. The rate has remained at 5.75% since at least October 2025. The Executive Board also maintained the deposit and lending facility rates at 4.5% and 7.0%, respectively. Annual inflation rose to 2.2% in August and is expected to move around 4% from September, remaining within the 3% ±1.5 percentage point target band over the two-year projection horizon, although prolonged energy pressures have increased upside risks. The central bank expects growth of at least 3.2% in 2026 and around 4.5% in 2027, driven mainly by consumption and investment. It will maintain relative exchange-rate stability. Rising global oil, gas and electricity prices amid the Middle East conflict could raise production and transport costs and disrupt supply chains and capital flows. The Executive Board will remain data-dependent and use all available instruments if energy-price increases generate stronger second-round effects through inflation expectations.
National Bank of Serbia Holds Key Policy Rate at 5.75%
The National Bank of Serbia held its key policy rate at 5.75%, with deposit and lending facility rates unchanged at 4.5% and 7.0%, citing the inflation outlook and heightened external risks. Inflation is expected to remain within the 3% ±1.5 percentage point target band, while growth is projected at at least 3.2% in 2026 and around 4.5% in 2027.