The country's central bank, the National Bank of Slovakia (NBS) lowered key interest rates by 0.25 percentage points, effective as of September 26.
The one-day sterilization repo rate will dip from 5 percent p.a. to 4.75 percent p.a. and the one-day deposit rate will fall from 8 percent p.a. to 7.75 percent p.a. Similarly, the two-week sterilization repo rate will decrease from 6.5 percent p.a. to 6.25 percent p.a., reported news wire SITA.
Most financial analysts were surprised by the central bank's move since, based on a recent statement by bank representatives, they had not anticipated changes to the bank's monetary policy. However, most of them assume the NBS move will only have a marginal effect on Slovakia's economy.
The NBS's move pushed the crown down from 41.25/28 SKK/EUR to 41.28/32 SKK/EUR.
Compiled by Beata Balogová from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
26. Sep 2003 at 11:59