The National Bank of Serbia (NBS) expects inflation to ease to around 3% by the end of the year, returning to its targeted range following a period of elevated global price pressures, Governor Jorgovanka Tabaković said on June 10. 

Speaking at the Annual Assembly of the Association of Banks of Serbia (UBS), Tabaković noted that headline inflation currently stands at approximately 3.8%, while core inflation has declined from 5% to 4.6%. She said that the disinflationary trend is expected to continue steadily.

“Inflation has returned to the target corridor, and by the end of this year we expect it to reach around the central target of 3%,” Tabaković said.

The National Bank of Serbia (NBS) has maintained a stable exchange rate policy, with Tabaković reaffirming that preserving the relative stability of the dinar against the euro remains a key pillar of the country’s financial and economic strategy.

Serbia’s banking sector remains resilient, with key indicators at historically strong levels. The share of non-performing loans (NPLs) has dropped to a record low of 2.3%, reflecting a significant reduction in bad loans across the system.

Serbian banks are well-capitalised and maintain robust liquidity. The sector’s capital adequacy ratio stands at 21%, while the liquidity coverage ratio is at 190% and the net stable funding ratio at 178%. Credit growth continues to be driven by strong lending to both households and businesses, primarily financed through deposits.

Foreign currency savings by Serbian citizens have also seen a moderate rise, increasing by 2% this year to reach €15.7bn. Compared to 2012, that figure has more than doubled, underscoring growing financial confidence among households.