Slovak crown flat, market expects no rate change

...leave interest rates unchanged at the 
monetary policy meeting later in the day. 
    The crown was quoted at 33.820 per euro  as of 0730 
GMT, little changed from 33.825 late on Monday. 
    The central bank's policy-making board started its monthly 
meeting at 0700 GMT. It is expected to announce the rate 
decision before it holds a news conference at 1100 GMT. 
    Analysts polled by Reuters unanimously expected the NBS to 
leave the key two-week repo rate unchanged at 4.25 percent for 
the second month in a row. 
    "If this scenario materialises, there should be no market 
impact," said Slovenska Sporitelna analyst Michal Musak. 
    Most market watchers expected the Slovak monetary authority 
to wait for the European Central Bank to raise its rates, 
bringing Slovak and euro zone borrowing costs into line. 
    Another reason for leaving rates on hold is the recent 
stability of the Slovak crown, whose gains earlier in the year 
had tightened monetary conditions and led to 25 basis point rate 
cuts in March and April. 
    The crown has risen only 0.7 percent versus the euro since 
the May monetary policy meeting. It is now 4.6 percent above the 
parity rate in the exchange rate mechanism ERM-2 that Slovakia 
joined in 2005 as part of its plan to adopt the euro in 2009. 
-----------------MARKET SNAPSHOT AT 0730 GMT------------------- 
Crown/Euro  33.820 vs 33.825 on Tuesday (+0.01 pct) 
Crown/Dollar  25.177 vs 25.148 (-0.12 pct)  
5-yr govt bond  yield 4.672/4.493 vs 4.677/4.499 pct 
7-yr govt bond  yield 4.794/4.652 vs 4.796/4.654 pct 
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