NBS Raises Benchmark Interest Rate to 1.5% – What Does This Mean for Ordinary People?
The National Bank of Serbia (SNB) has decided to raise the benchmark interest rate from 1 to 1.5 percent. This decision would be necessary to calm inflation, that is to say to curb the growth of prices.
However, economists believe that the measure came late and will not produce the expected effects. The question is how this will affect loan and mortgage rates and if this is just the start of a new upward trend in interest rates.
For all citizens who have taken out mortgages or loans in dinars at variable rates, the monthly payments could increase.
Banking products, expressed in dinars, such as credit card fees, may also increase by 50 percentage points.
Economist Nikola Stakić believes that this is only the beginning of a new trend and that we should expect a further rise in interest rates. “Those who need to worry are citizens who are only now considering making long-term financial decisions, for example, taking out a mortgage, or citizens who are paying mortgage payments right now. This is now a new trend. We are talking about a new global macroeconomics, where all the central banks in the world are tightening their monetary policy. We can expect this to be only the first step, especially bearing in mind that if the predictions come true, we will enter a global recession,” adds Stakić.
For now, the rise in the benchmark interest rate is symbolic, but in the long term, it could have a significant impact on household budgets. Economists conclude that most Serbs have mortgages and loans with an exchange clause, so they are advised to pay close attention to the rise in the European Central Bank’s benchmark interest rates.
This position is also available in: Italian