Spectator on facebook

Spectator on facebook

IN SHORT

Inflation up to 4.5 percent, rate hike expected

IN APRIL 2006 annualised 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.

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

Slovak healthcare needs thousands of medical workers

Slovak doctors, nurses and midwives are not hesitating in finding better work conditions abroad.

Illustrative Stock Photo

Study shows construction of Eastring gas pipeline is feasible

Construction of the interconnector may begin in 2022.

Variants of the possible route of Eastring

Spectacular Slovakia #3: Unexpected hiking (Enjoy Bratislava's greenery) Audio

In Slovakia, you can hike in the capital city. Listen to the latest episode of our travel podcast to find out more.

Foreigners: Top 10 events in Bratislava Video

Tips for the top 10 events in the capital between September 21 and September 30, plus regular services in different languages, training, temporary exhibitions and highlights of the year.

Kapitulská