NBS sees room for lower long rates

The National Bank of Slovakia (NBS) said on June 11 that it saw room for the continuing decline of long-term interbank interest rates, which had already fallen by around six percent over the past month. "The interest rate curve is not yet well proportioned," said Peter Andresič, head of the NBS open market operations department. "Further downward movements at the longer end of the rate curve may be expected." Longer-term maturities have been declining steadily since mid-May after the Finance Ministry repeatedly rejected all bids in the State bond auctions. "Further movements of interest rates will now mainly depend on the ministry's actions in covering the state budget," Andresič said.