Central Bank cuts key interest rates due to economic development

Cuts to key interest rates were made possible by Slovakia’s favourable economic developments.
The Bank Board of the National Bank of Slovakia (NBS) explained in its commentary on the decision to lower interest rates that economic growth does not create pressure on demand inflation. The NBS came to the conclusion that no further pro-growth risks were identified in inflation since economic development was in compliance with NBS expectations, said NBS Vice-Governor Martin Barto.

Moreover, the approval of lower interest rates did not change general monetary conditions, and thus did not deny the importance of a strong crown in the decision-making process of setting rates.

"General monetary conditions in Slovakia are determined by these two factors, so the Bank Board did not affect them through their action," Barto said.

He added that the published structure of Q4 2006 GDP was in accordance with NBS expectations when the main momentum of economic growth was net export.

Labour productivity still grew more quickly than the wages. Inflation, measured by the harmonized index of consumer prices, slowed down from the previous month in February but was in compliance with NBS expectations as well.

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

Top stories

A paraglider flies over a valley from the Martinské hole mountains.

The Slovak region compared to Tuscany is a big unknown

Set out on a trip to the Turiec region with a new Spectacular Slovakia podcast series.


17. jún

News digest: Slovak-Hungarian relationship has never been as good as now, Hungarian MFA says

Health Ministry fears spread of Delta strain from football match in Budapest. Hungarian Foreign Affairs Minister refutes claims of a negative relationship with his Slovak counterpart. Read more in today's digest.


18. jún
Child-initiated play is a style of play where children choose how, where, and what they wish to play with.

Blog: Play is the child’s work

Learning through child-initiated play.


18. jún
Illustrative stock photo

Law change makes cannabidiol legal

CBD allowed in cosmetics, but off the menu for food products.


18. jún