• Fed cut interest rates by 25 points, according to expectations. However, as it stated in a commentary, upward inflation risks are to some extend offset by downward growth risks. Bets on further decline of rates by the end of this year have therefore decreased.
• Oil prices reached a new record of USD
95 per barrel as American oil week-reserve decline by 3.9m. barrels was the main impulse. By contrast, only slight increase had been expected.
• Unsurprisingly, Polish central bank left interest rates unchanged at 4.75%. Rate increase is expected during the next monetary session.
• The ministry of Finance changed this year’s GDP growth estimae from 5.8% to 5.9%. Public finance deficit should reach 3.4% and it should go down to 2.9% of GDP.
• Growth of American economy accelerated to 3.9% in 3QO7, while slow-down to 3.1% had been expected. ADP report showed 106 thousand new job positions in the private sector, which significantly exceeds the expected 60 thousand.
• According to a report by World Economic Forum, the Czech economy is 33rd in the world in competitive strength. The Czech Republic is on a similar level with Qatar or Tunisia. Slovakia, Hungary and Poland are lower on the list. The US economy is the strongest in terms of competitiveness.
• Inflation in the European Monetary Union accelerated to 2.6%, in contrast to the expected 2.3%. Probability of further rate increase by ECB has slightly increased.