Serbia Interest Rate

The National Bank of Serbia held its benchmark interest rate steady at 5.75% during its March 2025 meeting, along with deposit (4.5%) and lending facility rates (7.0%). The rate has remained at this level since September 2024, following three 25-basis-point cuts in June, July, and September. Policymakers emphasized the need for a cautious monetary approach despite a significant decline in inflation and its stabilization, citing ongoing geopolitical tensions, the growth of protectionism, and uncertain global trade policies. The central bank also highlighted concerns about fluctuations in energy prices, other primary commodities, and certain food raw materials. Meanwhile, the board projected GDP growth of around 4.5% this year, driven primarily by domestic demand, particularly personal consumption, as well as fixed asset investments.