Sticking With Longer Term SKK Strength

May 2006 | Market Strategy

Slovakia upped rates by 50bps on Tuesday to 4.00%. National Bank of Slovakia (NBS) Governor Ivan Sranko said that this move came against the backdrop of an ongoing awareness of the inflationary situation. He highlighted "persisting identified upward risks of which some are strengthening… A continuing increase in oil prices is a pro-inflation factor", with second round effects from higher utility prices being key. As such, there is concern that the 2.5% 2006 HCIP target may prove increasingly difficult to meet with consumer prices coming in at 4.5% in April, and the currency looking soft against the backdrop of the

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