The central bank has said its decision last Friday to raise interest rates could be only the first of several monetary measures to correct expansive fiscal policy and worrying macroeconomic developments such as a strong crown and high trade deficit. “The rates rise alone will not reverse current developments, and gives insight into the possible future direction of monetary policy if macroeconomic risks are not reduced,” said National Bank of Slovakia Governer Marián Jusko on April 29. Jusko noted that while the NBS had predicted a full-year trade deficit of Sk96 billion after a record Sk103 billion in 2001, the bank now felt the 2002 figure could also break Sk100 billion.
Compiled by Tom Nicholson from press reports.
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
