The National Bank of Serbia lowered its key policy rate by 25bps to a record-low of 2.5 percent at its August 8th 2019 meeting, surprising markets who expected no changes. The move follows an unexpected 25bps cut in the previous meeting. In July, annual inflation rate fell to a fourteen-month low of 1.5 percent from 2.2. percent in June, the lower end of the central bank’s 1.5% to 4.5% target range. Over the next two years, policymakers expect inflation to continue to move within the target, most likely at the lower end. Interest Rate in Serbia averaged 8.76 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.