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.

Top stories

Russian spies allegedly recruit also Slovaks

They are using martial art clubs in Germany and dozens more in other EU states, in the Western Balkans, and in North America.

Illustrative stock photo

EC scrutinises state aid for Jaguar Photo

There is a question whether the scrutiny may impact the carmaker’s plans to invest in Slovakia.

The construction site of a brand new plant of Jaguar Land Rover near Nitra.

GLOBSEC forum will host guests from 70 countries

The 12th year of the conference will be attended by the highest number of participants in its history.

Slovak President Andrej Kiska gives the opening speech of The Globsec 2016 security conference.

Armed forces need new armour, and more

Slovakia's armed forces need to modernise their military technology, but also improve infrastructure and make soldiers' salaries more competitive.

Illustrative stock photo