Comparison of short-term interest rates in Central Europe

Short-term bank rates in Central Eastern Europe

Source: Eurostat, Date: 12/2007, 3 month bank rate

EU (15 countries) 4,59 %
Czech Republic 3,10 %
Poland 4,74 %
Romania 7,24 %
Slovakia 4,34 %

Comparing to previous post on comparison of interest rates, this table gives interesting overview of short term bank rates in Central Eastern Europe. Interesting fact is the difference between Czech Republic and Slovakia which is much more bigger than difference in 10-years bonds.

In connection with the fact, that inflation rate in Czech Republic is growing most fast from all the mentioned countries, this could support opinion of analysts about movements in bank rates in Czech Republic in near future.

Czech National Banks meeting will take place on July, and according Zdenek Tuma, governor of Czech National Bank, no movements in bank rates should be made but it all depends on political pressure to get the inflation rate under control.