National Bank of Serbia Raises Benchmark Interest Rate to 6%

Monetary Policy Adjustment

On November 12, 2026, the National Bank of Serbia (NBS) announced a decision to increase its benchmark interest rate. The rate was raised by 25 basis points, moving from 5.75% to 6%. This move is part of the central bank's ongoing strategy to navigate the current macroeconomic environment and ensure long-term price stability.

Context of the Decision

The decision to tighten monetary policy reflects the central bank's commitment to curbing inflationary pressures. By increasing the cost of borrowing, the National Bank of Serbia aims to influence domestic demand and stabilize the national currency. Key factors influencing this decision include:

• Persistent inflationary trends in the regional economy
• The need to maintain the attractiveness of local currency assets
• Global economic uncertainties affecting emerging markets

In its official statement, the central bank noted that it would continue to monitor economic indicators closely. An official spokesperson stated, 'The bank remains prepared to adjust its monetary policy instruments as necessary to ensure that inflation returns to the target range in a sustainable manner.'

Economic Impact

The adjustment to the 6% benchmark rate is expected to have immediate effects on the Serbian banking sector. Commercial banks are likely to adjust their lending and deposit rates in response to the central bank's policy shift. Businesses and consumers may face higher borrowing costs, which the National Bank of Serbia views as a necessary step to anchor inflation expectations and support the stability of the Serbian dinar.

Future Outlook

Looking ahead, the National Bank of Serbia has indicated that future policy decisions will remain data-dependent. The Executive Board will continue to evaluate the impact of global geopolitical developments and domestic economic performance. The bank's primary objective remains the achievement of price stability, which is considered essential for sustainable economic growth in Serbia.