Serbia’s Central Bank Keeps Key Policy Rate at 5.75 Percent
The National Bank of Serbia (NBS) has decided to keep the key policy rate unchanged at 5.75 percent. This decision was made by the NBS Executive Board on Thursday.
The key policy rate, which affects interest rates for loans and deposits, has been at 5.75 percent since September last year. The central bank had previously lowered this rate three times in 2024 to stimulate the economy.
Inflation is within target levels, but the NBS is still cautious due to uncertainty in the global economic environment. This includes rising geopolitical tensions, protectionism, and trade disruptions.
The Executive Board also took into account potential impacts on inflation and economic activity from new protectionist measures and fluctuations in global energy and commodity prices.
According to projections, inflation should remain within target levels this year, slowing down around mid-2025 due to tighter monetary conditions and lower imported inflation.
The NBS will present its latest macroeconomic projections in a report on February 19. The next rate-setting meeting is scheduled for March 13.