Serbia Interest Rate

The National Bank of Serbia cut the reference interest rate by 25 basis points to 6% in July, following another 25 basis points cut in June, driven by sustained decline in inflation. Domestic inflation fell within the target range of 4.5% in May, and is projected to stay within 3±1.5% throughout the forecast period. This trend is supported by reduced global inflationary pressures and previous tight monetary measures. Additionally, The European Central Bank and the Federal Reserve are also expected to lower rates, further reducing borrowing costs, prompting the committee to ease monetary policy to support credit activity and domestic demand while maintaining control over inflation. Positive trends in the real sector and higher-than-expected GDP growth projections also contributed to the committee's decision.