Serbia Interest Rate

The National Bank of Serbia maintained its key policy rate at 5.75% in November 2024, marking a second consecutive meeting without a change. This decision follows previous rate cuts totaling 75 basis points since June, with anticipated effects still unfolding. Although inflation stabilized within the target range (3 ± 1.5%) and eased to 4.2% in September, inflationary pressures persist due to rising energy costs, regulatory factors, global uncertainties, and heightened geopolitical risks. Moreover, inflation is further influenced by favorable credit growth (6.6% YoY in September), supported by recent monetary policy easing. Meanwhile, a resilient banking sector, declining public debt, and strong GDP growth (3.1% YoY in Q3) underscore a positive economic outlook. Additionally, Standard & Poor's recent upgrade of Serbia’s credit rating to investment grade is expected to improve financing conditions, fostering continued growth