The Executive Board of the National Bank of Serbia announced that it will keep the reference interest rate steady at 5.75%, along with unchanged deposit and credit rates at 4.5% and 7.0%, respectively.
In making this decision, the Board emphasized ongoing global uncertainty due to protectionist policies adopted by leading economies, which continue to impact inflation and economic growth worldwide.
According to the statement, the pace of global inflation decline remains uncertain, while economic growth is expected to slow down due to disruptions in trade and production chains, coupled with increased global risk aversion negatively affecting investments and consumption.
Although global prices for primary commodities, particularly oil, have fallen amid the anticipated economic slowdown, caution is advised. Rising production costs driven by increased tariffs could still exert upward pressure on inflation.
The Board also noted that the European Central Bank continued to ease monetary policy in June, which may improve borrowing conditions for euro-indexed loans in Serbia. Meanwhile, the U.S. Federal Reserve is expected to proceed more cautiously with monetary easing.
Recent spikes in prices for certain food commodities like cocoa and coffee, combined with last year’s drought effects, have influenced domestic food prices. However, these pressures are expected to ease with the arrival of the new agricultural season.
