The National Bank of Serbia left its key policy rate unchanged at 5.75% at its September 2026 meeting, keeping borrowing costs at that level since September 2024. Policymakers cited caution over the effects of international developments on current and expected inflation. Headline inflation eased to 1.9% in July, remaining below the midpoint of the central bank’s 3% plus or minus 1.5 percentage point target range. Inflation is expected to fluctuate around 4% from September and remain at that level throughout 2027. Economic activity accelerated more than expected in the second quarter of 2026, with growth reaching 3.8%. The central bank projects economic expansion of 3.2% in 2026 and 4.5% in 2027. Unemployment fell to a record low of 7.2%. Policymakers also highlighted elevated uncertainty linked to the conflict in the Middle East and said spillover effects could not be ruled out.