Serbia Monetary Policy


Serbia: NBS cuts its policy rate to a new record low in August

August 13, 2015

At its 13 August monetary policy meeting, the Executive Board of the National Bank of Serbia (NBS) decided to cut the reference rate by 50 basis points to 5.50%, which represents the lowest rate since the NBS introduced an inflation targeting mandate in 2006. The Bank has cut its main monetary policy rate by 250 basis points since March.

In its accompanying statement, the NBS stated that inflation remains below the Central Bank’s lower band of 4.0% plus/minus 1.5% and that disinflationary forces remain strong on weak domestic growth and low inflation abroad. The Executive Board affirmed that external risks diminished after Greece and international creditors reached an agreement in July, while on the domestic front the economy is benefiting from Serbia’s arrangement with the IMF. Moreover, the Bank declared that the macroeconomic outlook had improved on the back of the effects of fiscal consolidation and somewhat positive economic news. The NBS’ next meeting is scheduled for 10 September.

FocusEconomics Consensus Forecast panelists expect the policy rate to end 2015 at 5.25%. For 2016, the panel sees the rate ending the year at 6.21%.

Author: Ricard Torné, Lead Economist

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Serbia Monetary Policy Chart

Serbia Monetary Policy August 2015 1

Note: NBS Reference Rate in %.
Source: National Bank of Serbia (NBS).

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