Serbia Economic and FDI Outlook
Monetary Conditions were tightened in the Previous Months Through
the Key Policy Rate and Required Reserve Ratio
National Bank of Serbia
In April 2024, the key policy rate remained
unchanged at 6.5%
Chart 23 Interest rates
(in %)
22
Key Policy Rate
The required reserve ratio was increased in
September 2023
Chart 24 Reserve requirement ratios
(in %)
50
20→
18
16
14
12
10
8
6
4
2
0
Deposit Facility
Lending Facility
BELIBOR 1W
Average interest rate on repo auction
40
40
30
30
----FX <2r
RSD <2г
FX >2r
RSD >2r
29.0
26.0
23.0
22.0
20.0
20
20
19.0
г-
16.0
13.0
10
7.0
5.0
2.0
0.0
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
In making such decision, the Executive Board primarily took
into account the following factors:
.
⚫ global inflation continues to slow, with the risks as to its further
movement being increasingly balanced, but global inflationary
pressures even though receding, remained still elevated;
• that caution in domestic monetary policy conduct is needed also
due to rising global oil prices after the OPEC+ countries
extended supply curbs to Q2, in an environment of elevated
geopolitical tensions, longer transport routes and higher
logistical costs.
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
NBS increased required reserves (RR) in September:
• FX RR rates by 3 pp (to 23%/16% for liabilities with the
contracted maturity of below and over 2Y, respectively),
while increasing dinar allocations of FX RR by 8 pp (to
46%/38%, depending on maturity of liabilities).
the RSD RR rate by 2 pp each (to 7% and 2%,
depending on maturity of liabilities).
Major effects:
•
.
withdrawal of excess dinar liquidity by RSD 114 bn
(around 20%).
the turnover on O/N Interbank market has increased.
FX RR currently stands at EUR 2,905.4 mn, while RSD
RR is RSD 419.6 bn.
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