The Czech National Bank left its interest rates unchanged yesterday as expected. The bank committee sees inflation risks neutral to slightly disinflationary. Vice-governor of the CNB Ludek Niedermayer said that the Koruna exchange rate was still higher than the central bank would consider as adequate.
Czech Confederation of Commerce expects sales to increase by 3 to 5 percent this year. Main factor of the favorable development in trade will be ongoing consumer optimism. Rate of private savings falls and number of hobby-markets rose above 100 (Incoma Research informed).
Euro zone’s first quarter GDP rose only by 0.1% y/y and by 0.2% q/q respectively. The economy of the region decreased by 0.3% at the end of last year. GDP in the European Union rose by 0.2% y/y and by 0.2% in comparison with fourth quarter of 2001. The rise was driven by export, consumer spending and investments fell.
Hungarian central bank agreed a coordination of monetary and fiscal policy with the cabinet yesterday in order to meet inflation targets. The end year inflation should fall within 3.5 to 5.5%. For the next year prices should range 2.5 to 4.5%.
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