The central bank of Serbia left its key policy rate unchanged at 3 percent on November 8th 2018, as expected, saying inflation will move within the target tolerance band (3.0±1.5%) over the next two years. In September, annual inflation rate fell to 2.1 percent from 2.6 percent in August, the lowest inflation rate since May. The central bank added that uncertainty in global oil prices; the policies of the Federal Reserve and the European Central Bank and trade tensions still mandate caution in conducting monetary policy. Interest Rate in Serbia averaged 9.11 percent from 2006 until 2018, reaching an all time high of 18 percent in October of 2006 and a record low of 3 percent in April of 2018.
Interest Rate in Serbia is expected to be 3.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Serbia to stand at 2.75 in 12 months time. In the long-term, the Serbia Interest Rate is projected to trend around 2.75 percent in 2020, according to our econometric models.