The National Bank of Serbia (NBS) Executive Board held the key policy rate at 5.75% in August, citing actual and expected inflation and international risks while noting an improved growth outlook. The rate has remained at 5.75% over the past year. The NBS also held the deposit and lending facility rates at 4.5% and 7.0%, respectively. Annual inflation fell to 1.9% in July, below expectations, and is projected to be lower this year than forecast in May and remain within the 3±1.5% target band through the projection horizon, despite an expected rise to around 4% in September due mainly to base effects. Preliminary data showed real gross domestic product growth accelerated to 3.6% year on year in the second quarter, supported chiefly by services amid stronger private consumption. The NBS will maintain relative exchange-rate stability. The effects of the Middle East conflict and higher global oil prices have so far been smaller than initially expected, but prolonged or intensified tensions could affect production and transport costs, supply chains, capital flows and inflation. The NBS will continue its cautious, data-dependent approach and use all available instruments if higher oil prices generate stronger second-round effects through inflation expectations.
National Bank of Serbia2026-08-13
National Bank of Serbia Holds Key Policy Rate at 5.75%
The National Bank of Serbia (NBS) held its key policy rate at 5.75%, with deposit and lending facility rates unchanged at 4.5% and 7.0%, respectively. Annual inflation fell to 1.9% in July and is expected to remain within the 3±1.5% target band, while second-quarter real gross domestic product growth accelerated to 3.6% year on year.