Slovak crown calm, seen quiet before rate decision

    BRATISLAVA, Oct 31 (Reuters) - The Slovak crown held stable 
against the euro on Tuesday morning and dealers expected only 
minor moves before the central bank decides on interest rates at 
its monetary policy meeting later in the day. 
    The crown was quoted at 36.340 to the euro as of 0815 GMT, 
unchanged from Monday's close. 
    Traders said the market had priced in a 25 basis points rate 
hike, which would bring the key two-week repo rate to 5.0 
percent, after a meeting which is due to begin at 1400 GMT. 
    "Confirmation of our forecast should not have a major impact 
on the crown because it (a 25 basis point hike) is priced in the 
market," CSOB Bank wrote in a note to clients. "The market will 
pay more attention to the following comments." 
    Most analysts in a Reuters poll earlier this month predicted 
a rate hike in October, but several market watchers said the 
bank might delay the rate increase to November or December 
because the recent crown rise has tightened monetary conditions. 
    The central bank has raised the two-week repo rate by 175 
basis points in four steps so far this year as Slovakia needs to 
bring down inflation to meet conditions for the planned euro 
adoption in 2009. 
    The monetary authority will also present its quarterly 
update of economic prognosis on Tuesday, which will give new 
forecasts of inflation, economic growth and current account. 
----------------MARKET SNAPSHOT AT 0815 GMT------------------- 
Crown/Euro <EURSKK=> 36.340 vs 36.340 on Friday ( 0.00 pct) 
Crown/Dollar <SKK=>  28.638 vs 28.583 (-0.19 pct) 
5-yr govt bond <SK5YT=RR> yield 4.648/449 at 4.648/449 
8-yr govt bond <SK8YT=RR> yield 4.520/320 vs 4.539/4.340 
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 ((Reporting by Martin Santa; editing by Gerrard Raven; Reuters 
Messaging: martin.santa.reuters.com@reuters.net; +421 5341 
8402)) 
  Keywords: MARKETS SLOVAKIA CROWN OPEN