The National Bank of Slovakia’s (NBS) bank board decided on April 24 to lower key interest rates by 0.25 percentage points. This means that the rate for two-week repo tenders will go down to 4.25 percent, while the rate for overnight refinancing operations will be cut to 5.75 percent, and the rate for overnight sterilization operations will fall to 2.25 percent. The measure will take effect on Wednesday, April 25. After this step was announced, the Slovak crown paradoxically appreciated on the forex market.
The currency had begun to weaken earlier in the day, slipping from its opening level of Sk33.60/EUR to almost Sk33.70/EUR.
However, according to economic analysts, these cuts represent only an adjustment of the rate to the already existing situation on the market.
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
25. Apr 2007 at 11:26