Weeks of April 1st, 2019 – April 12th, 2019
By Quinnipiac University's Economics Research Team, Bryan Doherty
CEE Interest Rates INDEX Analysis
The trend for the central eastern European interest rate index was mixed over the previous two weeks. Hungary and Slovakia were the two countries with the greatest variation amongst their interest rates. Hungary’s interest rate increased by 9.82% over the two-week period, while Slovakia’s interest rate decreased by 5.08%. Poland and Romania saw their interest rate increase by approximately 2%, and Czechia posted a decrease of less than 1% in theirs.
HISTORIC RATE Analysis
Although Hungary saw their interest rate increase by nearly 10%, it is still within their historical average. The interest rate in Slovakia, on the other hand, has remained below its historical average for the past two weeks. It will be interesting to see if this substantial decrease in their interest rate will stimulate their economy. Since Slovakia uses the Euro, it is more influenced by European Central Bank (ECB) interest rates than the other CEE countries analyzed here. As the ECB pushes their rates negative to stimulate European economies, we would expect to see an effect first in Slovakia among the CEE countries we look at.