The behaviour of the Slovak central bank (NBS) indicates that it is definitely being guided by Slovakia's upcoming adoption of the euro, said VÚB bank analysts on November 24, noting that NBS followed the lead of the European Central Bank (ECB) by reducing its key interest rates in November.
If the ECB reduces its interest rates, the NBS should follow suit, say the analysts, adding that the market expects the ECB to cut its key interest rate by 0.5 percentage points to 2.75 percent at its session on December 4. A regular NBS session is scheduled for December 19.
"We expect that the NBS, along with the ECB, will reduce its interest rates by 50 points. As happened in November, NBS may react even before December 19, probably on December 9," the analysts stated. TASR
Compiled by Zuzana Vilikovská from press reports
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