Czech Republic, Slovakia and Hungary to Raise Interest Rates

Central banks in Czech Republic, Slovakia and Hungary are expected to raise interest rates this year to lower inflation. The average inflation rates in these countries are about 2.9 percent, compared with average 2.5 percent in the EU. According to various estimations of Bloomberg economists, the Czech Republic’s two-week repurchase rate is expected to rise from 2% to 2.25%-2.5% by the end of 2006.