Serbia: NBS leaves rates unchanged in March
The Central Bank stands pat: At its meeting on 13 March, the Executive Board of the National Bank of Serbia (NBS) decided to maintain its policy rate at 5.75%.
Global economic uncertainties keep the Bank in wait-and-see mode: The Central Bank’s decision was driven by a desire to observe the effects of the 75 basis points of cuts made in 2024. Moreover, the NBS noted that a cautious monetary policy approach was still needed as economic uncertainties in the international environment remain heightened, amid simmering geopolitical tensions and protectionism.
NBS to cut rates by end-2025: The Bank provided no specific guidance on future interest rate changes. Our Consensus is for the Bank to reduce rates several times by the end of 2025, totaling around 75 basis points, as inflation is expected to trend down towards the center of the target range in the coming quarters. The next meeting is scheduled for 10 April.