Key policy rate kept at 5.75%

At its meeting today, the NBS Executive Board voted to keep the key policy rate at 5.75%, as well as the rates on deposit and lending facilities – at 4.5% and 7.0%, respectively.

In making the decision, the Board highlighted that the key policy rate was trimmed on three occasions in 2024, by 25 bp each time, and has stood at 5.75% since September, with the effects of these cuts expected to play out in the coming period as well, the National Bank of Serbia (NBS) says in its press release.

As stated by the Board, despite a significant decline in inflation and its stabilization, it is necessary to continue to exercise a cautious monetary policy stance, given the ongoing geopolitical tensions, growing protectionism, and trade policy uncertainty globally. Caution is also needed in light of the uncertainties concerning the global prices of energy and other primary commodities, as well as the prices of some food raw materials, particularly coffee and cocoa, which have recently touched their record highs on global exchanges.

The next rate-setting meeting where economic developments will be considered is scheduled for April 10, 2025.

Narodna banka Srbije Beograd

National Bank of Serbia

NBS

key policy rate

interest rate on deposit facilities

interest rate on lending facilities