On the first key rate-setting meeting in 2025, the Executive Board of the National Bank of Serbia (NBS) decided to remain cautious and keep the rate at 5.75%. Still, high geopolitical risks and global market fragmentation pose inflation risk. |
The Executive Board of the National Bank of Serbia (NBS) voted to keep the benchmark rate unchanged at 5.75% again. Concerns with the global geopolitical tensions and the impact it could have on the macro-economic development, supported today's decision. |
The monthly dynamics in retail prices resurged again in October (+0.6% mom) after 0.1% mom in September. The headline print increased only moderately to 4.5% yoy after 4.3% yoy in September, still it is now approaching the upper band of the inflation target (3% +/-1.5pp). |
The Executive Board of the National Bank of Serbia kept the key rate at 5.75%, pausing the easing cycle for the 2nd month in a row. Inflation concerns amidst geopolitical uncertainties that are causing energy price volatility prompted the NBS to be cautious. |
The €6 billion EU Growth Plan aims to accelerate the socioeconomic development and EU integration of the Western Balkans through investments in key areas like clean energy and digitalization. Tailored strategies are necessary to address unique economic challenges and leverage global shifts, enhancing regional economic prospects. The region’s potential for nearshoring further boosts growth opportunities. However, progress depends on resolving bilateral disputes and implementing essential reforms, particularly in governance and rule of law. |