FX.co ★ Serbia Central Bank Keeps Interest Rate at 5.75%

The National Bank of Serbia decided to keep its benchmark interest rate steady at 5.75% during its final meeting of 2025. Concurrently, the deposit rate remains at 4.5%, and the credit facility rate is held at 7.0%. After inflation dropped to 2.9% in September and further to 2.8% in October, the Executive Board anticipates it will stabilize around the 3% target into March of the following year. The GDP growth remained consistent at 2% in the third quarter, matching the central bank's forecasts, primarily fueled by the services and industrial sectors, although the construction sector experienced ongoing contraction. The Board predicts economic growth of 2.1% for 2025, which is expected to accelerate to 3.5% in 2026, with household consumption and fixed investment as key drivers. Emphasizing prudence amidst global uncertainties, trade tensions, and geopolitical challenges, the Board reaffirmed its commitment to a data-driven and adaptable policy strategy focused on maintaining financial stability and fostering economic growth.