Serbia’s auto market is getting its first major boost this month as the country’s central bank announced a 3.3% interest rate increase for the first time in four years.
The rate will be the highest in the Balkans, which is where the Serbian economy is based.
But the bank is taking it into account and is considering raising the rate by more than 6.5% in the coming months, to 5.3%.
Serbia’s central banks rate has remained steady at 4.5%, but the country has been in recession for years and is struggling to get its economy moving again.
Its inflation rate is now higher than that of other European countries, and unemployment is also on the rise.
But the central bank has not given up hope for Serbia to bounce back.
The central bank’s rate increase comes after an interest rate cut in January.
The decision, which helped the economy recover in the months following the global financial crisis, was a major win for the central bankers credibility and helped stabilize the market, said Mihail Petrovic, an economist at the private investment bank BNI.
Petrovic also said the central banks move is good news for the Serbian government and economy.
The new interest rate will bring a 5.9% inflation rate to Serbia’s economy, which has averaged 4.3%, and a 2.4% unemployment rate.
The country has already seen a 6.4%, and 3.7% inflation, as a result of the financial crisis.
Petrović said the move is an indication that the country will be able to bring back growth and jobs in the near future.
“I think the interest rate decision is a good step forward,” he said.
Petrogovic said that the central banking rate cut was a step in the right direction, but the central banker must also consider how to keep the economy moving in the short term.
“The current situation is a long-term problem,” he told the Reuters news agency.
“It needs to be fixed.”
Petrovics analysts have said that while the central rate hike may help boost the economy, it will not bring back long-lost jobs.
The country has lost more than 3 million jobs in recent years.
Petrivs bank rate hike comes as Serbia is on a trade war with Turkey, which accuses Serbia of selling its gas and oil to Turkey, and as it is being forced to pay its creditors to bail out a country that is the biggest debtor in Europe.
Serbia has also been battling a debt crisis that has left it unable to pay back its debts.
The debt crisis has left the country unable to repay its international creditors.
Petric said the latest rate move was good news, but Serbia will not get out of the debt crisis quickly.
“Serbia will not pay back the debts in full for many years, even after the interest rates are raised,” he wrote in a report published on Thursday.
Petrvs rate increase is a major step for the bank, which recently raised its forecast for the economy.
Its target for Serbia is to grow by 3.5 percent this year, up from 3.1 percent this time last year.
The bank has said that Serbia will need to boost exports by at least 10.4 percent in order to get back to its target, which it expects to reach by the end of 2019.
The Central Bank of Serbia (SB) is due to hold a meeting in March.