The National Bank of Serbia kept its key policy rate at 5.75%, with the deposit and lending facility rates unchanged at 4.5% and 7.0%, respectively. The decision reflects inflation remaining within the 3% plus or minus 1.5 percentage point target band, alongside continued risks from global energy prices and geopolitical tensions. Headline inflation fell to 1.9% in July, driven largely by an 18% annual decline in fruit and vegetable prices, while core inflation remained at 4.5%. The bank expects inflation to rise to around 4% from September and remain near that level during 2027 before gradually declining. It also raised its 2026 growth forecast to 3.2% after annual gross domestic product growth accelerated to 3.8% in the second quarter, while retaining its 4.5% forecast for 2027. The bank will maintain a cautious policy stance and monitor whether higher global oil prices generate broader price pressures through production costs and inflation expectations. Its next rate-setting meeting is scheduled for Oct. 8, 2026.
2026-09-10National Bank of Serbia
National Bank of Serbia holds key policy rate at 5.75% as inflation remains within target band
The National Bank of Serbia held its key policy rate at 5.75%, with inflation remaining within the target band despite global energy and geopolitical risks. It expects inflation to rise from 1.9% in July to around 4% from September and during 2027, while upgrading its 2026 growth forecast to 3.2%.