Serbia Interest Rate

The National Bank of Serbia left its benchmark interest rate unchanged at 5.75% at its final meeting of 2025. Deposit and credit facility rates were also held steady at 4.5% and 7.0%, respectively. After inflation eased to 2.9% in September and 2.8% in October, the Board expects it to hover around the 3% target through March next year and even by the end of 2026. GDP growth in Q3 remained at 2%, in line with the central bank’s expectations, driven mainly by the services and industrial sectors, while construction activity continued to contract. The Board projects economic growth of 2.1% for 2025, accelerating to 3.5% in 2026, supported by household consumption and fixed investment. The central bank emphasized that a cautious approach to monetary policy remains necessary amid global uncertainty, trade tensions, and geopolitical risks, while reaffirming its commitment to a data-driven and flexible approach aimed at maintaining financial stability and supporting growth.