Rate Hike in Serbia
November 12, 2026
The National Bank of Serbia’s policy interest rate unexpectedly was raised by 25 basis points to 6.0%. Such was the first change since a fast trio of 25-bp declines in June, July and September of 2024. Serbian consumer prices leaped 0.8% on month in October, lifting their 12-month increase to a 14-month high of 4.4% just three months after a 64-month low of 1.9% in July. That’s near to the ceiling of the central bank’s target corridor of 1.5-4.5%. A released statement from the bank’s executive board characterizes the rate hike as a preventative measure to promote a return to target a year from now.
Prolonged uncertainty in the international environment, due to the conflict in the Middle East, has continued to affect developments in the global energy market, driving up not only the prices of oil, but also of natural gas and electricity. Moreover, oil inventories, used during the first months of the conflict to mitigate price pressures, have gradually been depleted, further intensifying pressures in the global energy market. higher energy costs could be passed through to a greater extent to production and transport costs, supply chains, inflation expectations, wages and the prices of other goods and services.
Copyright 2026, Larry Greenberg. All rights reserved.
Tags: National Bank of Serbia
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