Czech National Bank (CNB) governor Zdeněk Tůma and chief of the Bohemian and Moravian Trade Union Confederation Richard Falbr discussed a wage growth for 2002. The trade union is likely to recommend raising wages by 7-8%. According to CNB governor the unions' idea is at the upper limit of sustainability and it should not lead to inflationary pressure. However, CNB sees a risk in lower inflation and slower economic growth. Falbr also suggest a wish to lower interest rates.
The Czech koruna broke the all-time high against the euro yesterday. After a week of relative stability in the range of 33.20-33.30 CZK/EUR the koruna returned to the appreciation trend. The market set the new all-time high at 33.10 CZK/EUR yesterday in the evening. Nevertheless, further appreciation will likely to be cautious. The market is afraid of central bank intervention.
The government delivered a new proposal of public orders law. Opposition politicians criticized an involvement of a possibility to assign a public order without tender. The same point became a reason for European Commission critics.
According to Bundesbank's estimates the GDP growth in Germany in the third quarter 2001 should reach only 0.25%, y-on-y.