Inflation up to 4.5 percent, rate hike expected

IN APRIL 2006 annualized inflation in Slovakia reached 4.5 percent, 2 percentage points above the central bank's target level.

The rise in inflation was due especially to growing household consumption and consumer borrowing. Analysts believe that the National Bank of Slovakia (NBS) could increase the basic interest rate from the current 3.5 percent to 4.0 percent at the end of May.

However, even if the NBS does increase its key rate to 4 percent, commercial banks will not necessarily follow suit.

"To a considerable extent, banks have already factored in the expected rate hike to their [current] interest rates," said UniBanka economist Viliam Pätoprstý.

Most banks increased their rates at the beginning of this year following the NBS rate hike in February.

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

Massive gatherings remember Kuciak and Kušnírová: We did not forget!

One year after the murder of journalist Ján Kuciak, large protests took place around Slovakia.

Protest gathering in Bratislava, February 21, 2019.

Owls indicate spring is coming

Male owls lured by bird calls fly in to take a look at the intruder.

Long-eared owl

Murder of journalist: We need to see indictments of masterminds soon

International journalists’ organisations are “cautiously optimistic” after meeting investigators of the Kuciak murder.

Ján Kuciak

Ján Kuciak and Martina Kušnírová were murdered one year ago (timeline)

These are the notable moments of the first year since the murder.

Paying tribute to Ján Kuciak and Martina Kušnírová.