NBS keeps the reference interest rate at 6.5%

The Executive Board of the National Bank of Serbia decided at today's meeting to keep the reference interest rate at the level of 6.5%. Interest rates on deposits (5.25%) and credit facilities (7.75%) were kept at unchanged levels.

- The decision of the Executive Board to keep the reference interest rate at an unchanged level, as in previous months, was influenced above all by the medium-term inflation projection and the expected movement of the key factors of inflation, and above all, although decreasing, still elevated global inflationary pressures and considerable uncertainty regarding movements in world prices of energy and other primary products - the NBS press release states.

The Executive Board pointed out that year-on-year inflation in Serbia continues to slow down, even faster than the National Bank of Serbia had projected, and it reached 5% in March.

- Core inflation also continued to slow down, under the influence of the previous tightening of monetary conditions, and in March it equaled the total inflation. Contributing to the inflation slowdown is the reduced growth in food prices and the further lowering of inflation expectations of the financial sector and the economy for a year ahead, and since the beginning of this year, the short-term expectations of the financial sector have been within the limits of the National Bank of Serbia's target - the announcement reads.

In the upcoming period, the Executive Board expects a further decrease in inflation and its return to the target limits, probably in May this year, somewhat earlier when compared to the expectations from the February mid-term inflation projection.

The next session of the Executive Board, during which the decision on the reference interest rate will be made, is scheduled for June 13, 2024.

Narodna banka Srbije Beograd

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