Slovak crown flat as mkt eyes cbank rate verdict

28.11.2006 | , Reuters
Zpravodajství ČTK


perex-img Zdroj: Finance.cz

    BRATISLAVA, Nov 28 (Reuters) - The Slovak crown traded 
little changed on Tuesday morning as the market expected the 
central bank to leave interest rates on hold at its monetary 
policy meeting later in the day, traders said. 
    The crown traded at 35.620 to the euro <EURSKK=> as of 0840 
GMT, after 35.600 late on Monday. 
    Analysts forecast the central bank to leave its key two-week 
repo rate unchanged at 4.75 percent in November as the crown's 
jump by 2 percent in the past month helped it tame inflation 
risks that could endanger the goal of adopting the euro in 2009. 
    "Confirmation of our expectations, should have a neutral 
impact on the market," CSOB bank wrote in a market note. "The 
market will pay more attention to the subsequent comments (by 
central bankers)." 
    The central bank will probably wait for the structure of the 
record strong GDP growth of 9.8 percent in the third quarter, to 
be released in December, before it makes any adjustments to 
rates. 
    Most analysts in a Reuters poll earlier this month expected 
rates to rise again by at least 25 basis points in the coming 
months to secure fulfilment of the ifnlation condition for euro 
zone entry. 
----------------MARKET SNAPSHOT AT 0840 GMT------------------- 
Crown/Euro <EURSKK=> 35.620 vs 35.600 on Monday (-0.06 pct) 
Crown/Dollar <SKK=>  27.103 vs 27.078 (-0.09 pct) 
5-yr govt bond <SK5YT=RR> yield unchanged at 4.426/4.224 pct 
8-yr govt bond <SK8YT=RR> yield 4.199/050 vs 4.397/4.198 pct 
-------------------------------------------------------------- 
  ((Reporting by Martin Santa, editing by Chris Pizzey; Reuters 
Messaging: martin.santa.reuters.com@reuters.net; +421 5341 
8402)) 
  Keywords: MARKETS SLOVAKIA CROWN MORNING 
    

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