|Interest rate p.a.
|Discount rate - 100% of key policy rate
|Reserve requirement rate
|Interest rates in the money market
|Key policy rate
|Deposit facilities interest rate
|5.25% (key policy rate-1.25 p.p.)
|Lending facilities interest rate
(liquidity credit - overnight (O/N) loan facility)
|7.75% (key policy rate+1.25 p.p.)
|Note: No interest is charged on liquidity credit used and repaid on the same business day (intraday loan).
NBS interest rates applied in money market operations
As provided by the Law on the National Bank of Serbia, the Executive Board sets the level of the key policy rate and main interest rates applied by the NBS in money market operations.
Key policy rate has the role of signalling the monetary policy stance, as well as the role of benchmark interest rate because the level of money market interest rates i.e. interest rate corridor, is set with reference to this rate.
Key policy rate is the highest and/or lowest interest rate applied by the National Bank of Serbia in the conduct of repo transactions of sale and/or purchase of securities. The level of the key policy rate is set by the Decision on the Key Policy Rate of the National Bank of Serbia.
Interest rate corridor, i.e. the highest and lowest interest rate used by the NBS in the conduct of money market operations, is established based on the level of key policy rate. The highest interest rate is the rate on lending facility (O/N daily liquidity loan), while the lowest interest rate used by NBS in the above transactions is the rate on deposit facility (overnight deposits with NBS).
Other NBS interest rates
Decision on Interest Rates Applied by the National Bank of Serbia in the Implementation of Monetary Policy specifies the level of interest rates on lending and deposit facilities, as well as the level of other NBS lending and deposit rates.
The National Bank of Serbia charges interest to commercial banks on:
- the amount of overnight loan for maintaining daily liquidity, extended against a collateral of securities (liquidity loan) – by applying the interest rate equal to the key policy rate increased by 1.25 percentage point;
- the amount of credits and other lending that have not been repaid within the agreed or prescribed period, and/or that are used contrary to regulations – by applying interest rates determined by the law regulating default interest;
- the amount of difference between the calculated amount and actual average daily balance of allocated dinar required reserves in the maintenance period lasting from the 18th of the month to the 17th of the following month (hereinafter: maintenance period), and on the amount of difference between the prescribed and calculated dinar required reserves in the maintenance period - by applying interest rate equal to the key policy rate plus 5 percentage points;
- the amount of difference between the calculated and actual average daily balance of allocated foreign currency required reserves in the maintenance period and on the amount of difference between the prescribed and calculated amount of foreign currency required reserves in the maintenance period – by applying interest rate equal to the three-month EURIBOR applicable on the date of interest calculation, increased by 5 percentage points.
The National Bank of Serbia pays interest to banks on:
- the amount of actual average daily balance of allocated dinar required reserves in the maintenance period which does not exceed the amount of calculated dinar required reserves – by applying the interest rate of 0.75% p.a.;
By way of exception, to mitigate the economic consequences of the COVID-19 pandemic, the NBS pays on a portion of these assets, provided the prescribed conditions are met, interest equal to 1.25% p.a. (0.75% + 0.50 percentage points).
- the amount of funds deposited by a bank with the National Bank of Serbia (deposit facility) – by applying the interest rate equal to the key policy rate reduced by 1.25 percentage point.