Serbia Interest Rate

The Central Bank of Serbia left its key interest rate steady at 5.75% during its first meeting of 2025, marking the fourth successive hold and defying expectations of a 25 basis point rate cut. The interest rates on deposits and credit facilities were also kept unchanged at 4.5% and 7%, respectively. Policymakers pointed out a total 75 basis point rate cut since June 2024, with the effects of previous policy easing expected to materialize soon. It stressed the need for ongoing prudent monetary policy in light of global uncertainties, especially geopolitical tensions and market fragmentation, despite inflation returning to target. Inflation in Serbia edged lower to 4.3% in November 2024, from a five-month high of 4.5% in October, staying within the central bank target of 3 ± 1.5% for a seventh straight month.