3-Month NIBOR in 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.
Serbia 3-Month NIBOR Chart
Serbia 3-Month NIBOR Data
|3-Month BELIBOR (%, eop)||3.12||3.03||1.64||0.90||0.94|