In a move that caught the market off-guard on Thursday (25 September), the Slovak National Bank (NBS) cut key interest rates by 0.25 percentage points.
The two-week repo rate will be 6.25 %, the one-day sterilising rate 4.75 %, and the one-day refinancing rate 7.75 %.
Radomir Jac of Commerzbank Capital Markets told the CTK news agency the cut was more symbolic - a signal to the market that the bank was prepared to cut rates despite high inflation. The strong Slovak crown is generally seen to be behind the rate cuts.
The currency dipped from SKK 41.275/EUR to SKK 41.32/EUR when the cut was announced, but had recovered to SKK 41.245 by noon. The central bank last cut interest rates - by a hefty 1.5 points - in November.
Source: Interfax
