Czech National Bank

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

Czech National Bank

March 27, 2014

The two-week Czech repo rate was last cut in November 2012.  That reduction was 20 basis points in size and left the Czech Republic with a virtual zero interest rate policy (the rate has been at 0.05% ever since).  To prevent tighter monetary conditions caused by deflation, an additional exchange rate monetary tool was introduced […] More

Czech National Bank: No Changes

February 6, 2014

A statement from Czech monetary officials reaffirms the existing ultra-loose monetary policy.  A virtual zero interest rate policy has been in place since a 20-basis point cut of the two-week repo rate to 0.05% in November 2012.  There were also cuts of 25 bps each in June and September of that year.  In November 2013, […] More

Czech National Bank

December 17, 2013

The two-week Czech repo rate has been at 0.05% since a 20-basis point cut on November 1, 2012.  Previous cuts of 25 bps were implemented in September 2012, June 2012, May 2010, December 2009, August 2009, and May 2009.  From a peak of 3.75% prior to August 2008, it was also cut 25 bps that […] More

Czech National Bank

November 7, 2013

As in Hong Kong, Singapore, and Switzerland, Czech monetary policy henceforth will be subordinated to an exchange rate policy mandate.  Some central banks like the Fed, Bank of Japan, and Bank of England have used asset buying to stimulate monetary policy once their interest rates are virtually at zero.  Monetary officials in the Czech Republic […] More

Czech National Bank

September 26, 2013

The Czech two-week repo rate was kept at 0.05% where such has been since a 20-basis point cut in November 2012.  This is a virtual zero interest rate policy, yet inflation (1.3% from a year ago) and real GDP growth (-1.3% year-over-year) remain low.  The monetary policy bias remains one of ease, but this can […] More