The National Bank of Serbia left its key policy rate unchanged at 3 percent on its May 5th 2019 meeting, as widely expected. Policymakers said that prudence in monetary policy is still needed, mainly due to uncertainty in the international environment. The Committee noted that the convergence of inflation rate to the target range in March was mostly due to cost of vegetables and their growth above the seasonally regular for this period of the year. In the forthcoming period, inflation is projected to remain stable within the target tolerance band (3.0±1.5 percent). Policymakers added that economic growth in 2019 is expected to be driven by domestic demand. Interest Rate in Serbia averaged 8.87 percent from 2006 until 2019, 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 3.00 in 12 months time. In the long-term, the Serbia Interest Rate is projected to trend around 3.00 percent in 2020, according to our econometric models.