CNB board decided to let interest rates unchanged on its Thursday's meeting. Board member Jan Frait added that domestic demand does not decrease its growth and thus there is no reason to release monetary conditions. However, CNB Governor did not exclude a possibility of a downgrade of economic growth forecast in 2002. A new forecast should be released in the January inflation report and should stay above 3% according to Governor's statement.
President of the Czech Republic Vaclav Havel signed a state budget law for 2002. Havel also signed a road tax law that penalizes owner of cars produced before 1990 that are considered to be non-ecological.
Crisis in Argentina culminates. At least 14 people have died in the riots and looting in the last 24 hours, Prezident De la Rua suspended constitutional guarantees for 30 days after four days of looting and protests over spending cuts, tax increases and the seizure of retirement savings. Economy Minister Domingo Cavallo, the architect of the nation's currency system, quit. De la Rua said his chief of cabinet would be responsible for economic decisions until a new government is formed. Argentina's President faced mounting calls for his resignation. Most Czech economists, including us, consider that Argentinean economic crisis should not affect the Czech economy and currency.
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