RSS Serbia Holds Steady: Benchmark Interest Rate Remains Unchanged at 5.75%

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 RSS Serbia Holds Steady: Benchmark Interest Rate Remains Unchanged at 5.75%

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Serbia's Central Bank has decided to maintain the benchmark interest rate at 5.75% as of January 2025, continuing the rate set the previous month. This decision follows the economic strategy aimed at stabilizing the country's financial environment amidst uncertain global economic conditions.

In December 2024, the Serbian repo rate was increased from 5.5% to 5.75% to tackle an uptick in inflationary pressures. However, with current indicators showing balanced economic progress, the bank has opted for stability in the new year, keeping rates unchanged.

The decision reflects a cautious approach to economic policy, aiming to support growth while keeping inflation under control. Market analysts speculate that while the bank is currently in a "wait and see" mode, future adjustments may be on the horizon if global economic trends fluctuate or if domestic fiscal markers change significantly. The next policy meeting is highly anticipated to provide additional insights into Serbia's economic course for 2025.

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