Slovakia ’s central bank recently cut its key interest rate by 0.5% to 3.25% in an unscheduled cut to bring Slovakia’s interest rates into line with the European Central Bank’s (ECB) policy rate, according to Lars Christensen, chief analyst at Danske Bank.

He said: “While the timing of the cut is a bit surprising, it should be no surprise to the markets that the National Bank of Slovakia (NBS) would sooner or later have to align its key policy rate with the ECB rate given that Slovakia looks set to join the Euro-zone on 1 st January 2009.”

Two weeks ago, the NBS cut its main policy rate by 0.5% to 3.75%.