• February’s retail sales increased by 9.4% y/y and came above market expectations of 6.4%. Rapid growth is, after
PPI, another indication of possible inflation pressures in economy.
• State is planning to abolish six months test for capital gains as it wants to increase tax revenues.
According to Deputy Minster of Finance Mrs. Trezziova there might be possible compromise reached and tax test will move to 5-10 years.
• Strike has already started in Skoda Auto and each shift will be reduced by two and a half hours. Trade Unions want to push management to more significant wages increase as they refused proposal for 13% rise.
• Net buys of American securities by foreign entities reached
USD 94.5bn in February and this figure is above expectations. Retail sales increased by 0.7% in March.
• Consumer prices index in
eurozone in March increased by 0.7% m/m and inflation reached 1.9% y/y.
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According to ECB’s Christina Noyer Europe might be on verge of stable growth period, fueled by internal demand. Monetary conditions are maximum favourable for investments and growth.