Slovak crown eases as market awaits rate cut

...to cut interest rates at the monthly 
monetary policy meeting later in the day. 
    The crown was at 33.665 to the euro  as of 0715 
GMT, compared with 33.600 late on Monday. 
    Most analysts in a Reuters poll predicted the central bank 
would cut rates again on Tuesday after trimming them in March. 
    "A 25 basis point cut is priced in," said VUB bank dealer 
Laco Benedek.  
    Such a policy easing would bring the key two-week repo rate 
to 4.25 percent. The rate decision is expected between 1100 and 
1300 GMT. 
    Analysts said, however, they could not rule out other 
outcomes for the policy meeting. 
    "Leaving the rates unchanged should have a slightly positive 
impact on the crown," CSOB Bank analysts said in a market note. 
    A rate cut by more than 25 basis points was likely to push 
the crown to weaker levels of 33.700 per euro, market watchers 
said. 
    The central bank will also present a quarterly update of its 
economic prognosis on Tuesday, which is expected to confirm that 
Slovakia is on track to adopt the euro in 2009. 
------------------ MARKET SNAPSHOT AT 0715 GMT ----------------- 
Crown/euro  33.665 vs 33.600 on Monday (-0.19 pct) 
Crown/dollar   at 24.795 vs 24.797 (+0.01) 
5-yr govt bond  yield 4.164/3.765 vs 4.100/3.900 pct 
7-yr govt bond  yield 4.350/4.149 vs 4.404/4.154 pct 
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