UPDATE 1-Slovak FinMin keeps 2006 CPI fcast, ups 2007

BRATISLAVA, Oct 2 (Reuters) - The Slovak Finance Ministry on Monday said it had kept its end-2006 inflation forecast of 4.5 percent, but upped its 2007 prediction to 3.1 percent from a previous 2.5 percent estimate.

The ministry also said in forecasts updated on its Web site that it was sticking to its 2006 GDP estimated of 6.6 percent growth, followed by 7.1 percent growth in 2007.

"I expect they've projected the increased threat stemming from commodities prices into the prognosis, which has lasted through this year," said ING Bank senior analyst Lucia Steklacova.

Slovak inflation has been building in 2006 due to rising utility prices, pushed up by global oil costs and strong economic growth.

The central bank has tightened policy by 175 basis points this year, pushing its key two-week interest rate to 4.75 percent, as it seeks to curb inflation to make Slovakia eligible to meet the euro zone criterion.

The country plans to adopt the euro in 2009 though analysts say concerns over inflation and the overall fiscal deficit cast doubt on whether the target will be reached. ((Reporting by Martin Santa, Editing by Mike Peacock; Email: martin.santa@reuters.com; RM: martin.santa.reuters.com@reuters.net; +421 2 5341 8402))

Keywords: ECONOMY SLOVAKIA FINMIN