The National Bank of Serbia (NBS) opted to maintain its benchmark interest rate at 5.75% during its meeting in July 2025. This decision reflects a cautious approach in light of global uncertainties, such as protectionist moves by leading economies and increased geopolitical tensions in the Middle East, which are impacting energy prices. Although the year-on-year headline inflation decreased to 3.8% in May, a temporary rise is anticipated due to escalating energy costs and adverse weather affecting food supplies. Inflation is projected to hover around the upper limit of the target tolerance band at 4.5%. Economic growth remains steady, bolstered by investments in manufacturing, expansion in exports, enhancements in services, and strong credit growth. Furthermore, with the European Central Bank maintaining an accommodative policy stance and the Federal Reserve exercising greater caution, the NBS decided to keep interest rates unchanged. This decision aims to ensure financial stability while allowing flexibility to adapt to emerging data and risks.