Czech National Bank
June 27, 2013
Monetary officials decided to keep the two-week repo rate at 0.05%, its level since a 20-basis point cut last November. Inflation risks lie to the downside, and growth last quarter was negative and worse than assumed in both quarterly and on-year terms. A statement speaks of a greater readiness to engage in currency market intervention because risks are “tilted toward a need for easier monetary conditions in comparison with the forecast.”
From a high of 3.75% in 2008, the main central bank interest rate in the Czech central bank was cut to 2.25% by the end of that year, 1.0% by end-2009, and 0.75% by end-2010 where such remained until a 25-bp cut in mid-2012. The most recent reductions were by 25 bps last September and the aforementioned 20 bps last November.
Copyright 2013, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Czech National Bank
ShareThis
