Finance Minister Jiri Rusnok told yesterday that an appreciation of the Czech currency was not an elementary problem for the Czech economy and its GDP growth. He also said that the appreciation trend would continue and the government has no tool to change it. His words completely eliminated an effect of Wednesday's verbal intervention of Jan Frait, CNB board member. The koruna strengthened to 31.46 CZK/EUR from 31.66 CZK/EUR yesterday.
Czech National Bank vice-governor Ludek Niedermayer considers the current level of interest rates as corresponding. He added, however, that rates could be lowered again if the expectations of an improvement of economic development worldwide, and particularly in the EU, are not fulfilled.
The Czech ombudsman Otakar Motejl asked the Constitutional Court to invalidate the regulation of rent established by ministry of finance. A problem is that only a law, not a directive of finance ministry, can implement the regulation.
The U.S. economy showed signs earlier this year of recovering from a recession that began last March, the Federal Reserve said in its latest survey of the U.S. economy called Beige Book. According to this survey, a situation on the labor market should be more favorable this year.
Current economic figures support this stance. The rate of unemployment in U.S. economy fell to 5.6% in January from 5.8% in December 2001. European economic cycle is somewhat delayed. The rate of unemployment in Germany increased to 10.4% in January from 9.6% in December. However, it has stabilized at 10.4% in February.
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David Marek