Central Bank keeps key interest rates unchanged

THE BOARD of the National Bank of Slovakia (NBS) decided on August 25 to keep key interest rates unchanged, although the markets are still expecting a fall hike after three rises already this year.

The key two-week repo rate thus remains at 4.5 percent, while refinancing operations stay at 6.0 percent, and the overnight repo rate for draining excess market liquidity remains at 3.0 percent.

The NBS raised key rates by 50 basis points in February, May and July to curb rising inflation.

The NBS also had to intervene twice in June to support the domestic currency. The first intervention came when the koruna rose to 38.55 SKK/EUR, while the second occurred at the end of the month when the exchange rate reached 38.48 SKK/EUR.

Now within the ERM II mechanism ahead of adoption the euro currency in 2009, Slovakia is obliged to keep its currency within a 15 percent fluctuation band around a central parity against the euro.

The central bank also intervened to defend the Slovak koruna in July, when the exchange rate pushed over 38.70/75 SKK/EUR.

Currently the domestic currency is being traded at around 37.70 SKK/EUR.

Top stories

Janka, a blogger, during the inauguration of the first flight to Athens with Aegean Airlines at the airport in Bratislava on September 14, 2023.

A Czech rail operator connects Prague and Ukraine, Dominika Cibulková endorses Pellegrini, and Bratislava events.


Píšem or pišám?

"Do ľava," (to the left) I yelled, "Nie, do prava" (no, to the right), I gasped. "Dolšie," I screamed. "Nie, nie, horšie..." My Slovak girlfriend collapsed in laughter. Was it something I said?


Matthew J. Reynolds
Czech biochemist Jan Konvalinka.

Jan Konvalinka was expecting a pandemic before Covid-19 came along.


SkryťClose ad