Czech National Bank

May 4, 2017

The two-week repo rate, which is the Czech National Bank’s main policy instrument now that a cap on koruna appreciation beyond 27.0 per euro has been lifted as of four weeks ago, was held steady by a unanimous vote today. It’s been at 0.05% since a cut in November 2012. According to a released statement, Czech central bank official anticipate that domestic market interest rates will begin rising in the second half of 2017 and continue in that direction next year but only very gradually until mid-2018. The biggest uncertainty involves the koruna’s uncertain path.

Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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