Q3 2020 Business Update amid Covid-19
Business environment
-
Policy rate cuts in across CEE
•
Austria
Czech Republic
Romania
3M Interbank
10YR GOV
0.11%
1.00%
4.61%
4.41%
4.21%
3.88%
-0.17%
2.10%
-0.91%
-0.08%
-0.29%
1.12%
0.58%
0.34%
1.61%
-0.34%
1.02%
3.00%
-0.39%
-0.30%
2.34%
2.24%
1.91%
-0.47%
1-9 19
1-9 20
Q2 20
Q3 20
1-9 19
1-9 20
Q2 20
Q3 20
1-9 19
1-9 20
Q2 20
Q3 20
ECB has kept its discount rate at zero &
significantly increased quantitative easing
as response to Coronavirus
•
National bank has cut the base rate in
three steps by 200bps to 0.25% in March
& May 2020
Central bank cut the key policy rate in
three steps by 100bps to 1.50% in March,
May & August 2020
Slovakia
Hungary
Croatia
1.57%
0.95%
0.92%
0.38%
0.43%
0.12%
2.65%
2.24%
2.23%
2.27%
0.84%
-0.14%
0.68%
0.97%
0.19%
0.65%
-0.34%
-0.39%
-0.30%
1-9 19
1-9 20
Q2 20
-0.47%
Q3 20
1-9 19
1-9 20
Q2 20
Q3 20
1-9 19
1-9 20
Q2 20
Q3 20
•
As part of the euro zone ECB rates and
actions are applicable in SK
•
National bank cut the key policy rate in two
steps by 30bps to 0.60% in June & July
•
Croatia joined ERM II in July 2020
•
Central bank cut its 1w repo from 0.3% to
0.05% in March 2020
Source: Bloomberg, Reuters for SK 10Y. Annual and quarterly averages.
ERSTEŚ
2020
Group
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