Czech National Bank

Czech National Bank Policy Left Unchanged

December 16, 2015

A statement released after the final Czech monetary policy meeting of 2015 confirmed the policy settings remain as is.  The interest rate structure since November 2012 has been 0.05% for the two-week repo rate and discount rate, and the Lombard rate has been 0.25%.  Since November 2013, intervention has been utilized to enforce an asymmetric […] More

Czech National Bank

November 5, 2015

Central bank officials decided to keep their stimulative monetary policy unchanged at the latest review and released a statement that rehashes the two elements of the stance.  The two-week repo rate has been at 0.05%, a virtual zero interest rate stance, since November 2012.  Since November 2013, moreover, intervention has been used to prevent the […] More

Czech Monetary Authorities Plan No Tightening of Ultra-Accommodative States Before 2H16

September 24, 2015

A statement after the latest policy review by officials at the Czech National Bank speaks of better-than-anticipated Czech domestic growth but doesn’t back away from forward guidance of a continuing very easy stance persisting into the second half of next year.  The policy combines a “technical” interest rate, which is really 0.05% with a koruna […] More

Czech National Bank More Upbeat Regarding Economic Trends but No Change in Policy

June 25, 2015

The latest CNB Board’s policy statement conveys three messages: The Czech economy is experiencing stronger growth and faces a reduced deflationary risk. Board members voted unanimously not to change monetary policy settings. The commitment not to tighten policy settings before the second half of 2016 remains intact. The Czech interest rate has been at 0.05% […] More

Accommodative Czech Monetary Policy to be Retained through 2016

May 7, 2015

There are two elements to this policy.  First, a technical zero interest rate policy has been in place since the central bank’s two-week repo rate was cut by 20 basis points to 0.05% at the beginning of November 2012.  This level will be retained until late 2016 at least, that is the end of the […] More

Dovish Czech Monetary Policy Statement

March 26, 2015

the latest policy meeting ended with Czech monetary officials retaining a technical zero interest rate policy attested by the 0.05% two-week repo rate, as well as an asymmetric currency policy to prevent koruna appreciation beyond 27 per euro with automatic unlimited intervention.  A very dovish statement commits to maintaining the currency cap throughout the forecast […] More

A Dovish Statement from the Czech National Bank

February 5, 2015

Czech National Bank officials decided unanimously to retain a virtual zero interest rate policy (0.05% to be precise) and an exchange rate policy that is using intervention as needed to asymmetrically prevent the koruna from appreciating beyond 27 per euro.  Moreover, “The Czech National Bank stands ready to move the level of the exchange rate […] More

Czech National Bank

November 6, 2014

The Czech central bank extended its exchange rate policy past end-2015 and retained a virtual zero interest rate policy after this month’s policy meeting.  The two-week repo rate has been at 0.05% for the past two years.  A year ago this month when more stimulus was needed but room to cut interest rates no longer […] More

Czech National Bank Keeps Existing Policy Stance as Expected

September 25, 2014

There are two elements to Czech monetary policy. A virtual zero interest rate policy (ZIRP), with the two-week repo rate pinned at 0.05%. A one-side exchange rate commitment, enforceable by intervention when necessary, that prevents the koruna from strengthening beyond 27 per euro. The 0.05% repo rate level has existed since a 20-basis point cut […] More

Czech National Bank Reaffirms Elements of Accommodative Monetary Policy

May 7, 2014

The two-week Czech repo rate has been at 0.05% since November 2012.  One year later, a cap on koruna appreciation at 27 per euro was added to the policy arsenal to prevent monetary conditions from tightening further via a strengthening currency without any offsetting cut in short-term interest rates.  Today’s statement from the central bank […] More