The National Bank of Serbia Executive Board held the key policy rate at 5.75%, citing actual and expected inflation and international risks, while upgrading its growth outlook. The rate was unchanged at every reported decision from September 2025 through August 2026. The central bank also kept the deposit and lending facility rates at 4.5% and 7.0%, respectively, and maintained relative exchange-rate stability. Annual inflation was 1.9% in July, within the 3% ±1.5 percentage point target band, and is projected to remain within the band over the next two years, although it is expected near 4% from September 2026 and through 2027 before gradually declining. Real GDP growth accelerated to 3.8% in the second quarter, prompting an upward revision to the 2026 growth forecast, while unemployment fell to a record low of 7.2%. The central bank said Middle East tensions and oil prices remain key global risks, with potential spillovers to costs, supply chains and capital flows. It will continue a cautious, data-dependent policy and use all available instruments if higher oil prices produce stronger second-round inflation effects.
2026-09-10National Bank of Serbia
National Bank of Serbia Holds Key Policy Rate at 5.75%
The National Bank of Serbia held its key policy rate at 5.75% and maintained its deposit and lending facility rates at 4.5% and 7.0%, respectively, citing inflation and international risks. It raised its 2026 growth forecast after second-quarter GDP growth reached 3.8%, while projecting inflation to remain within the 3% ±1.5 percentage point target band over the next two years.