The National Bank of Serbia left its benchmark interest rate unchanged at 5.75% at its final meeting of 2025, alongside maintaining the deposit rate at 4.5% and the credit facility rate at 7.0%. Following a decline in inflation to 2.9% in September and 2.8% in October, the Executive Board expects it to hover around the 3% target until March next year. GDP growth held steady at 2% in the third quarter, in line with the central bank’s expectations, driven mainly by the services and industrial sectors, while construction activity continued to contract. The Board projects economic growth of 2.1% for 2025, accelerating to 3.5% in 2026, supported by household consumption and fixed investment. The Board reiterated a cautious stance amid global uncertainty, trade tensions, and geopolitical risks, stressing its commitment to a data-driven and flexible policy approach aimed at preserving financial stability and supporting growth.