The National Bank of Serbia held its key policy rate at 5.75% on 11 June 2026 and left the deposit and lending facility rates unchanged at 4.5% and 7.0%, respectively, saying the decision reflected actual and expected inflation and risks from the international environment. The key rate has been unchanged at 5.75% since at least June 2025 in the provided statements. April y-o-y inflation rose to 3.3% from 2.8% in March, driven almost entirely by higher global oil prices and domestic petroleum product prices, and the Executive Board expects inflation to remain within the 3±1.5% target tolerance band until September, then temporarily edge above the upper bound around end-2026 and early 2027 before returning within the band by mid-2027; it said the disinflation path should be supported by the still restrictive monetary stance, easing external cost pressures and slower real wage growth. Real GDP growth was 3.2% y-o-y in Q1 2026, above the 3.0% flash estimate, while monthly indicators for April pointed to positive developments in industry, retail trade and tourism, in line with the May projection of 3% growth in 2026, and lending to corporates and households accelerated to 17.1% y-o-y in April. The National Bank of Serbia said it will maintain relative exchange rate stability as the Middle East conflict, the closure of the Strait of Hormuz for most ships and higher oil prices raise uncertainty over inflation and activity, with euro area inflation increasing to 3.2% in May; it reite
National Bank of Serbia2026-06-11
National Bank of Serbia Holds Key Policy Rate at 5.75%
The National Bank of Serbia kept its key policy rate at 5.75% on 11 June 2026, with the deposit and lending facility rates unchanged at 4.5% and 7.0%, citing actual and expected inflation and risks from the international environment. It said April inflation rose to 3.3% year on year mainly on higher oil and petroleum prices and is expected to stay within the 3±1.5% target tolerance band until September before temporarily exceeding it around end-2026 and early 2027, while the Middle East conflict, the closure of the Strait of Hormuz for most ships and higher oil prices have increased uncertainty.