In line with expectations the Czech National Bank (CNB) left interest rates unchanged. New forecasts increased probability of earlier tightening up of monetary conditions. As to CNB expectations inflation in a year should remain between 2.2-3.6% and in 18 months in range of 3.2-4.6%. This year’s GDP should increase by 5.4-6.9% and next year by 3.9-6.9%.
Consumers‘ confidence in the Czech Republic in April slightly decreased. The relevant index decreased to 1.2 point from 1.9 point in March. The same indicator for businesses’ confidence decreased to 20.1 points from 20.8 points.
Chinese central bank yesterday increased interest rates for the first time in 18 months. The primary interest rate was increased to 5.85% from 5.58%.
Period of US interest rates hikes comes to the end, according to head of Fed Mr Ben Bernanke. There will be one more hike in May, further development will depend economic growth risks in the US.
Eurozone inflation in April increased to 2.4% from 2.2% in March, according to preliminary estimates of Eurostat.
Last year’s EU25 current account deficit increased to EUR 94.2bn from EUR 12.8bn in 2004. Eurozone only, surplus of EUR 49.9bn in 2004 changed to deficit of EUR 22.6bn in 2005.
Estonia officially gave up its target to join eurozone on 1 January 2007. Reason behind this decision is high inflation. Date should now change to 1 January 2008.