Czech National Bank

Romanian and Czech Monetary Policy Reviews

August 6, 2020

The National Bank of Romania enacted its third policy interest rate reduction of 2020. Following up on cuts of 50 basis points in March and 25 bps, the rate was reduced by another 25 basis points to 1.50%. In justifying this step, a released statement states that “given the transmission lags of the lower policy […] More

Investors Spooked by Faster Proliferation of New Covid-19 Cases in the United States

June 24, 2020

The year-to-date number of reported U.S. infections, 2.424 million, has climbed somewhat more than 36k in the past 24 hours and 216 thousand from a week ago. This has created doubt that economic reopening can proceed as planned, and even supporters of President Trump are starting to lose patience that he has the right stuff […] More

Czech National Bank Cuts 2-Week Repo Rate

May 7, 2020

The Czech National Bank‘s two-week repo rate was slashed by a greater-than-forecast 75 basis points to 0.25%. The Lombard rate has been lowered to 1.0%, and the deposit rate will stay at 0.05%. In spite of a 25-basis point hike of the repo rate announced February 6, the key rate is now 175 basis points […] More

Disconnection Thursday Between Recessionary Data and Buoyant Stocks

May 7, 2020

Equities were mixed in Asia but have risen more impressively in Europe this morning. There were drops of 0.8% in India, 0.7% in Hong Kong and 0.2% in China but advances of 0.6% in Taiwan, 0.3% in Japan and 0.5% in New Zealand. The British Ftse, German Dax, and Paris Cac each have risen at […] More

Czech National Bank Reduces Two-Week Repo Rate to 1.0%

March 26, 2020

Ten days after an inter-meeting 50-basis point rate reduction on March 16, Czech National Bank officials at today’s scheduled meeting authorized a further 75-basis point rate cut, declaring in a released statement that the Czech economy likely faces a strong domestic recession for most of the rest of 2020 and that such will likely exert […] More

Czech National Bank Officials Ready to Ease More If Necessary

March 26, 2020

At an intermeeting meeting of the CNB Governing Board on March 16 reduced the two-week repo rate to 1.75% from 2.25%. Minutes of that meeting include forward guidance that further monetary relief may be undertaken. The Board agreed on the need to lower the CNB’s key interest rates and thereby ease the monetary conditions beyond […] More

Shocking Leap in U.S. Jobless Insurance Claims Steals the Spotlight

March 26, 2020

From theĀ  outset of this week, the most feared data release was today’s report on new jobless insurance claims for the week ending March 21, which was going to capture the impact of broad business lockdowns to combat the spreading Covid-19 pandemic. New claims had averaged 251k during the four weeks through March 14, and […] More

Czech National Bank

February 6, 2020

The Czech rate decision, a hike of the 2-week Czech National Bank repo rate to 2.25% from 2.0%, was a surprise and reflects a razor-thin 4-3 voting margin by the Monetary Board. Due in part to higher indirect taxes, CPI inflation has risen to 3.2%, highest since late 2012, and officials don’t expect such to […] More

Sliding Into Yearend Mode

December 18, 2019

With the yearend holidays fast approaching, it’s hard to identify overriding themes in financial markets. The dollar is mixed, with rises overnight of 0.4% against sterling, 0.2% relative to the euro and 0.1% against the yuan, no net changes versus the Swiss franc and yen, and dips of 0.3% vis-a-vis the kiwi, 0.2% against the […] More

Risk Back On

November 7, 2019

A claim was made by a Chinese Commerce Ministry spokesman that the U.S. and China have agreed to a phased and mutual reduction of trade deficits but only contingent on a trade deal being done. Stock markets are up 0.7% in Germany, 1.0% in Australia, 0.7% in Singapore, 0.6% in Hong Kong, 0.5% in India, […] More

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