The National Bank of Serbia left its key policy rate steady at a record low of 2.5 percent at its October 10th 2019 meeting, as widely expected. Policymakers said that monetary policy prudence is still needed, mostly due to developments in the international environment. The Committee added that the resilience of the domestic economy to possible negative impacts from the international environment increased due to the reduced internal and external imbalances, favorable macroeconomic outlook, and foreign exchange reserves. Policymakers noted that the annual inflation fell to 1.3 percent in August from 1.6 percent in July, due to a further decline of fruit and vegetable prices due to the new agricultural season. The Committee said that the inflation rate will be under control in the future, as in previous years, and added that the economy is expected to grow 3.5 percent this year, driven by domestic demand. Interest Rate in Serbia averaged 8.68 percent from 2006 until 2019, reaching an all time high of 18 percent in October of 2006 and a record low of 2.50 percent in August of 2019.
Interest Rate in Serbia is expected to be 2.50 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 2.50 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.