Serbia surprises with a rate hike to 6%, its first in over three years

The decision. The NBS Executive Board raised the key policy rate by 25 basis points to 6%. The deposit facility rate (what banks earn parking cash at the central bank) rose to 4.75% and the lending facility rate to 7.25%. The bank calls it a timely step to prevent stronger second-round effects of the energy shock and keep prices stable.

Why. In the NBS view, the Middle East conflict keeps oil, gas and electricity prices high. Oil stocks that softened prices in the first months have been drawn down. Refining margins rose too, especially for diesel, because of damaged refineries in the Middle East and Russia. The longer energy stays costly, the bigger the risk it spreads to transport, production, wages and expectations.

Inflation. Prices rose 4.1% on the year in September. Petroleum products rose more than 17%, and would have risen more if the government had not cut fuel excise duties. The NBS expects inflation next year to exceed the top of its 3% plus or minus 1.5 point band, that is above 4.5%. It should return to the band by the end of 2027.

The economy. The flash estimate puts Q3 GDP growth at 4.0%. The bank raised its 2026 growth forecast to at least 3.5% and cut its 2027 forecast to 4.0%.

Context. Bloomberg calls the hike a surprise: every economist in its survey expected a hold. It also links the move to pressure on the dinar after last month's election. The central bank's own statement does not mention the dinar.

What next. The next rate meeting is on 10 December. The NBS will decide meeting by meeting, based on incoming data.

حقائق مؤكدة

• The NBS raised its key policy rate by 25 bp to 6%; deposit and lending facility rates rose to 4.75% and 7.25%.^[1][2]
• The aim is to prevent second-round effects of the energy shock on other prices.^[1]
• Serbian inflation was 4.1% year on year in September; petroleum product prices rose more than 17%.^[1]
• The NBS expects inflation to exceed the top of its 3±1.5% band next year and return to the band by the end of 2027.^[1]
• Q3 2026 GDP grew 4.0% on the flash estimate; the 2027 growth forecast was cut to 4.0%.^[1]
• It is the first hike in more than three years; all economists in a Bloomberg survey expected no change.^[2]
• The next rate-setting meeting is on 10 December.^[1]

التبعات

• قراءتناDinar borrowing gets costlier for banks and, most likely, for borrowers.
• مؤكدThe bank directly ties the move to the risk that costly energy pushes up other prices.
• قراءتناOne more central bank is tightening, adding to the global picture of expensive money. This is our inference.

لا يزال مجهولًا

• Whether the NBS hikes again on 10 December.
• How long energy prices stay high.
• How much the dinar weighed on the decision: the bank does not say.

من يتأثر

Serbia, Europe, Global. People tracking European and emerging market rates, holding dinars or borrowing in Serbia

المصادر

1. National Bank of Serbia: Key policy rate raised to 6% 12 نوفمبر 2026 · رسمي
2. Bloomberg: Serbia Surprises With Rate Hike as Power Shift Weighs on Dinar 12 نوفمبر 2026 · إعلام