Agentura Moody´s leaves the Czech Republic rating unchanged at A1. The outlook remains positive. Moody´s valuates reform efforts, which should help to improve the public finance. Growth of GDP should slightly decrease but it will remain above 5% for a number of years.
According to Standard & Poors the crisis in the US risk- mortgages sector has not ended and it should reach its peak in 2009 at the earliest. S&P expects slow-down of the American economy, with the developing countries pulling the world economy.
Ecofin recommended that in 2008 the Czech Republic should lower the public finance deficit to less than 3% of GDP. If this limit is broken, the Czech Republic could be theoretically threatened with suspension of the EU grants. However, this has never occurred in practice.
Minutes from Fed cause mixed feelings. On the one hand, the members of the bank board agreed on lowering rates as a result of concerns about the economy development. On the other hand, there also appeared continuing inflation risks in the minutes. Market expectations of a further decrease of Fed rates have lowered.
Slovakian retail revenues in August grew on a year-on-year basis by 5.1% while the market expected a growth of 6.5%.