Czech National Bank

Czech National Bank Policy Rate Unchanged

March 28, 2019

The Czech two-week repo rate was lifted from a low of 0.05% by 45 basis points in 2017 and 125 basis points last year to its current level of 1.75%. Two of seven rate policy deciders, who favored another 25 basis point hike now, were overruled by a majority to leave the key interest rate […] More

Softer Dollar on the First Day After the Fed’s Rate Hike

December 20, 2018

Markets did not take comfort from Wednesday’s FOMC interest rate hike or the upbeat economic prognosis of Chairman Powell. The dollar fell overnight by 0.6% against the euro, 0.5% relative to the yen andĀ  Swiss franc, 0.4% vis-a-vis sterling, 0.3% versus the Australian dollar, and 0.2% against the yuan and loonie. Share prices fared poorly […] More

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 basisĀ  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

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