FX.co ★ National Bank of Serbia Holds Interest Rate Unchanged at 5.75%

In its September meeting, the National Bank of Serbia decided to maintain its benchmark interest rate at 5.75%. This decision was influenced by the present and anticipated inflation trends, alongside both domestic and global economic conditions. Headline inflation had accelerated to 4.9% in July, primarily due to rising food and non-alcoholic beverage prices, while core inflation was recorded at 4.7%. The central bank anticipates a decline in inflation by September, aided by temporary government trade regulations, and expects it to stay within the target range by year's end, with a slow easing projected into 2026. Economic activity showed resilience with GDP growth averaging 2% in the first half of 2025, buoyed by expansions in the services and manufacturing sectors, as well as investments in the automotive industry and infrastructure projects under the "Serbia Expo 2027" initiative. The unemployment rate dropped to 8.5% in the second quarter of 2025, compared to 9.1% in the previous quarter. The National Bank of Serbia reiterated its commitment to monitoring economic data closely and adjusting monetary policy as necessary to ensure financial stability and support robust economic growth.