Serbia central bank raised its key interest rate by 25 bps to 6.25% to curb rising inflationary expectations and ensure inflation falls within acceptable limits. The rates on deposit and lending facilities also increased to 5% and 7.5%, respectively. Despite global energy prices dropping, inflationary pressures remain a concern, necessitating careful monetary policy. Serbian inflation reached a peak in March before slowing to 15.1% YoY in April, mainly driven by a slowdown in food prices.