Czech National Bank

Another Tightening of Czech Monetary Policy

November 1, 2018

By a vote of 5-1 with one dissent in favor of unchanged policy, the Czech National Bank Board authorized a further 25-basis point increase in the benchmark two-week repo rate to 1.75% and in the Lombard and discount rates that flank it. This was the sixth hike of the repo rate since rate normalization began […] More

Dollar Down, Stocks Mostly Up Overseas

November 1, 2018

The dollar fell overnight on this first day of November by 1.5% against the kiwi, 1.3% relative to the Australian dollar, 1.0% vis-a-vis the peso and sterling, 0.7% versus the euro, 0.6% against the Swiss franc, and 0.4% relative to the loonie and yuan. The yen, in contrast, remains unchanged against the dollar. Share prices […] More

Czech National Bank Takes Another Step Toward Interest Rate Normalization

September 26, 2018

In November 2012, Czech monetary policymakers enacted their final interest rate cut of the Great Recession cycle, lowering the 2-week repo rate to 0.05%, which they considered to be the lowest level such could safely go and therefore a virtual zero rate policy. A cap on koruna appreciation at 26 per euro was imposed a […] More

Marking Time Ahead of Likely FOMC Rate Hike Later Today and Kavanaugh Hearing Tomorrow

September 26, 2018

The FOMC policy announcement today at 14:00 EDT (18:00 GMT) is expected to justify another 25-basis point rate hike now and to leave in play a possible fourth move this year in December. New forecasts will be unveiled, and Chairman Powell will preside over a press conference starting at 14:30 EDT to explain the latest […] More

Czech National Bank Lifts 2-Week Repo Rate to 1.25% from 1.00%

August 2, 2018

Developing economies like that of the Czech Republic depend on capital inflows, and these have diminished as a result of U.S. President Trump’s protectionist agenda. Currencies have depreciated, forcing central banks to raise interest rates and counter imported inflation. Today’s Czech National Bank rate increase is the fifth of the cycle, following moves of 20 […] More

Czech National Bank

May 3, 2018

The Czech two-week central bank repo rate was left unchanged at 0.75% by a six to one vote and will continue to be flanked by a 0.05% deposit rate and a 1.50% Lombard rate. The lone dissenting vote favored a 25-basis point hike in the 2-week repo to 1.0%. Policy normalization began exactly one year […] More

Czech National Bank

March 29, 2018

Czech monetary policy underwent important modifications in 2017. At an extraordinary session on April 6, officials ended a 3-1/2 year experiment with an asymmetric exchange rate target to prevent the koruna with automatic intervention from strengthening past the 27 per euro level. The use of intervention as a discretionary policy tool was retained. Then on […] More

Czech National Bank Raises its Interest Rates a Third Time

February 1, 2018

Following earlier increases of 20 basis points last August and 25 bps in November, the Czech two-week repo rate has been increased another 25 basis  points to 0.75%. The Lombard rate becomes 1.50% versus 0.25% prior to last August, while the 0.05% discount rate hasn’t changed all this time. A released statement anticipates some further […] More

Czech National Bank

December 21, 2017

The CNB by a 5-2 margin voted to retain the interest rate structure, with a main 2-week repo rate of 0.50% flanked by a 0.05% discount rate and a 1.0% Lombard rate. There had previously been increases in the repo rate of 25 basis points in early November and 20 bps last August, and the […] More

Czech National Bank Raises Interest Rates

November 2, 2017

The Czech National Bank’s first interest rate change was enacted in early August when the 2-week repo rate and Lombard rate were increased 20 basis points and 25 bps  to 0.25% and 0.50%, respectively. A second round of rate hikes was enacted today. The 2-week repo rate is being doubled to 0.5%, and the Lombard […] More