Presenting the National Bank of Serbia's 2025 reports to parliament's finance committee, the central bank reviewed its performance against its core mandates rather than announcing new measures. It said average inflation was 3.8% in 2025, with year-on-year inflation below the 3% target midpoint from September, while the key policy rate was kept at 5.75% to preserve a restrictive stance amid elevated risks. The bank also pointed to continued exchange rate management, strong foreign exchange reserves and a resilient banking system as the main anchors of stability. The review stressed that the National Bank of Serbia was a net seller of EUR 580 million in 2025 to counter depreciation pressures tied to sanctions on Naftna Industrija Srbije and broader market tension, while gross foreign exchange reserves stood at EUR 29.0 billion at year-end, covering 6.7 months of imports. Gold reserves rose by 4.4 tonnes from domestic production to a record 52.5 tonnes at the end of 2025 and reached 54.6 tonnes by June 2026. In banking, capital and liquidity remained well above regulatory minima and the nonperforming loan ratio fell to a record low of 2.1% at the end of 2025 and stayed there at the end of May 2026. Credit activity grew 15.4% in 2025 and accelerated to about 17% year on year in June 2026, while household and corporate dinar lending rates declined. The central bank also highlighted a March 2025 legislative package that capped interest rates on all household credit products, strengthened supervision and introduced a Bank Restructuring Fund, alongside consumer protection outcomes worth more than RSD 169 million in 2025. The update also covered current conditions in 2026. The central bank said year-on-year inflation slowed to 2.7% in June, first-quarter gross domestic product growth reached 3.2%, and it projects real growth of 3.0% in 2026 and 4.5% in 2027. It said future decisions will remain data-driven, with scope to respond if inflation or external risks intensify.
National Bank of Serbia2026-07-16
National Bank of Serbia presents 2025 reports, highlights 3.8% inflation and stable reserves and banks
The National Bank of Serbia used its presentation of the 2025 annual reports to parliament to review stable inflation, exchange rate management and banking sector resilience rather than announce a new policy action. It said average inflation was 3.8% in 2025, the key policy rate remained at 5.75%, gross reserves were EUR 29.0 billion and the nonperforming loan ratio was 2.1%. It also reported that June 2026 inflation slowed to 2.7% and said future decisions will remain data-driven.