Serbia Interest Rate

The National Bank of Serbia held its benchmark interest rate unchanged at 5.75% after its April 2025 meeting, leaving borrowing costs unchanged since its rate cut cycle bottomed in September of the previous year. The bank's Executive Board emphasized that heightened uncertainty in the international backdrop due to escalating trade wars between the world's largest economies and higher spending in top Eurozone members place upside risks to inflation and warrant a cautious approach to eventually resuming its monetary easing. Still, inflation has been steady near the 4.5% level as expected by the central bank, and forecasts still expect price growth to slow during the second half of the year. In turn, the central bank expects growth to accelerate during the latter part of 2025 as domestic companies ramp up capacity, limiting the urgency for relaxed financial conditions.