Slovakia: NBS keeps rate unchanged |
Autor: Bancherul.ro
2008-05-27 15:28 |
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As expected the Slovak central bank today kept its key policy rate unchanged at 4.25%, said Danske Bank.
It is now (nearly 100%) clear that Slovakia will join the euro area from January 2009, which means that the Slovak central bank (NBS) will have to bring interest rates down to the level of the ECB at 4.00%.
The reason why the NBS did not cut rates today is probably that it is waiting for the final decision from EU economics and finance ministers confirming the EU commission recommendation to invite Slovakia to join the euro area in 2009. The decision will be announced in June/July.
The Slovak government will negotiate the conversion rate for euro zone entry with EU authorities in the coming weeks. According to Prime Minister Robert Fico a strong exchange rate is needed to counter inflation risks.
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