Serbian town in the winter

Serbia Monetary Policy May 2023

Serbia: Central Bank keeps the policy rate unchanged at 6.00% in May

At its meeting on 11 May, the National Bank of Serbia (NBS) decided to keep its key policy rate at 6.00%. Similarly, the deposit and lending facility rates were kept at 4.75% and 7.25%, respectively.

The decision aimed to curb inflation, and was justified by the NBS’ belief that the full effects of past monetary tightening are yet to be felt. The gradual weakening of imported inflation also influenced the decision to hold. In addition, the monetary authority expects headline inflation to return to the target tolerance band of 1.5–4.5% by mid-2024. Finally, the Bank highlighted the importance of keeping a stable exchange rate against the euro in order to combat external price pressures. With this in mind, the NBS has been steadily intervening in the FX market in recent months.

The NBS stated its willingness to tighten its stance further if needed and highlighted the importance of domestic and international macroeconomic and monetary developments and the lagged effect of previous hikes. FocusEconomics panelists expect that the NBS will decrease the key policy rate marginally by the end of the year.

The next meeting will be held on 8 June.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest