• Cabinet will discuss the definition of social housing today which could be used to get round EU regulations and leave residential housing in the lower VAT category. According to Regional Development Minister Petr Gandalovic housing overall should be part of social politics and all flats and houses should remain in the lower category.
• Ministry of Finance placed on the market state bonds with 30 years maturity and coupon of 4.20%. In the auction bonds worth of CZK 8bn were offered, demand surpassed CZK 23bn and bonds for CZK 13bn were sold with average yield of 4.223%.
• Polish economy growth rate accelerated. GDP in the 3Q06 increased by 5.8% after 5.5% growth in the previous quarter.
• Polish central bank left its interest rates unchanged as expected, as even with the fast economic growth inflation remains low (in October 1.2%). Prime interest rate remains on 4.0%.
• US economy decelerated less than according to the first estimate. Numbers show that GDP of USA increased by 0.5% in the 3Q06 compared with previous quarter (2.2% annualised), and by 3.0% y/y.
• Unemployment rate in France remained flat in October on 8.8%, which is the five year minimum.