National Bank of Serbia maintains reference interest rate at 5.75%

The Executive Board of the National Bank of Serbia (NBS) has decided to maintain the reference interest rate at 5.75%. Additionally, interest rates for deposit facilities remain at 4.5%, and credit facilities are held at 7.0%.

The decision was influenced by observed and expected inflation trends, as well as geopolitical risks. While global inflationary effects from Middle East conflicts were initially limited, rising prices for crude oil, natural gas, and electricity have increased challenges. The NBS noted that as a small, open economy heavily dependent on energy imports, Serbia must carefully monitor these risks.

Year-on-year inflation in August saw a slight acceleration to 2.2% from 1.9% in July, driven largely by energy shocks. The Executive Board expects inflation to move toward approximately 4% starting in September, influenced by the low base from previous price-limiting regulations. Economists suggest the central bank is maintaining a cautious monetary policy due to domestic and international economic uncertainty.