Analysts expect central bank to raise interest rates

THE NATIONAL Bank of Slovakia (NBS) will likely increase its basic interest rate tomorrow by 25 basis points to 3.25 percent, local analysts agree.

The increase will affect consumer and mortgage loans, as well as corporate credit.

However, the rate hike will not have an equal impact on bank sector interest rates because banks in Slovakia have been expecting the increase for several months and have already partially factored it into their rates.

"Market rates have already increased slightly since the beginning of this year," Pavol Ondriska, an analyst with the ING DSS pension management company, told the SME daily.

According to Poštová banka analyst Miroslav Šmál, interest rates on loans will increase by 0.2 percent after the expected NBS decision.

Analysts expect the NBS to raise the base rate again in the second quarter of this year in order to rein in the Slovak economy, which grew at 7.5 percent year-on-year in the last quarter of 2005.

Compiled by Martina Jurinová from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

The processing of personal data is subject to our Privacy Policy and the Cookie Policy. Before submitting your e-mail address, please make sure to acquaint yourself with these documents.

Top stories

Murder of journalist: How did Ján and Martina die?

Journalists working with Ján Kuciak described how he and his fiancée, Martina Kušnírová, were killed.

People still remember Ján Kuciak and Martina Kušnírová.

The murder of journalist changed Slovakia, but not all of it

There are still people who continue as if it’s business as usual.

Illustrative stock photo

What are the best employee benefits? Ask your employees

Salaries and a good company atmosphere, not benefits, keep people loyal.

Parking as a benefit it popular among employees.

UPDATED: Protest gatherings will return to Slovakia one year after the murders of Kuciak and Kušnírová

The gatherings will be held under the slogan “We won’t forget! We will continue!”.

November 16 gathering in Bratislava