The Executive Board of the National Bank of Serbia (NBS) has decided to keep the key interest rate unchanged at 5.75 percent.
The decision, made at today’s meeting, also maintains deposit and lending facility rates at 4.5 percent and 7.0 percent, respectively.
Factors behind the decision
The Executive Board cited analyses of both realized and expected inflation, as well as developments in the domestic and international environment, as key factors for the decision.
Year-on-year inflation in August stood at 4.7 percent, largely driven by rising food prices due to adverse weather conditions. Despite positive trends, the central bank emphasized that “caution in monetary policy remains necessary due to ongoing uncertainty in the international environment, which, although reduced compared to the first half of the year, is still significant.”
Support for economic growth
According to the Statistical Office of the Republic of Serbia, GDP grew by 2 percent in the first half of the year, with further acceleration expected in the second half. The NBS highlighted the automotive industry’s production and export growth, as well as infrastructure projects under the “Leap into the Future – Serbia Expo 2027” program, as key growth drivers.
The Executive Board stressed that support for the anticipated economic acceleration comes from relative exchange rate stability and favorable credit financing conditions, which have led to double-digit growth in lending activity.
Decisions on future monetary policy will be made on a meeting-by-meeting basis, closely monitoring all relevant data. The next Executive Board meeting is scheduled for November 13.
