FX.co ★ Serbia Hikes Rate for 1st Time in 3 Years

The National Bank of Serbia raised its key policy rate by 25 basis points to 6.0% at its November 2026 meeting, ending the period of unchanged rates that had been in place since October 2024. The Executive Board highlighted that persistent uncertainty in the international environment, stemming from the war in the Middle East, has continued to push up prices of oil, natural gas, and electricity. This has recently driven a sharp increase in domestic refining margins. Citing heightened risks of second-round effects from elevated energy prices on overall inflation, the Board decided to tighten monetary policy. According to the latest data, inflation climbed to a 14‑month high of 4.4%, broadly in line with the central bank’s projections. At the same time, real GDP growth in the third quarter is expected to reach 4.0%, pointing to robust economic activity and providing additional room to raise interest rates in order to curb inflation.