• GDP in the 4Q06 increased by 5.8% y/y. From demand point of view it was contributed by household consumption, investment activity and inventory creation. As expected, GDP growth was negatively influenced by real progress of foreign trade. Detailed view on different sectors, it shows that manufacturing and trade contributed most significantly to GDP growth.
• Czech National Bank announced changes in monetary policy. As of 2010 the inflation target will be set to 2% +/- 1 p.p. CNB will publish votes on interest rates name by name, interest rates path corresponding to forecast of inflation and GDP and it will hold meeting eight times a year, instead of twelve times a year.
• Hungarian economy increased its growth rate by 3.2% last year. Growth rate in the 4Q06 decelerated to 3.2% from 3.8% in the 3Q06 and 2Q06.
• Germany’s balance of trade surplus increased in January to EUR 15.7bn from 14.8bn in December. Exports increased by 0.1% while imports decreased by 1.5%.
• According to expectations European Central Bank increased its prime rate by 0.25 p.p. to 3.75%. ECB president Jean-Claude Trichet indicated possibility of further interest rates hikes in eurozone.
• Slovak central bank yesterday intervened against SKK strengthening when the exchange rate reached SKK/EUR 33.80.