Czech National Bank

December 17, 2014

Monetary policy was not changed further at this month’s meeting of the CNB Board.  The last cut of the two-week repo rate, a 20-basis point reduction from 0.25% to 0.05%, was enacted in November 2013.  A year after that, monetary stimulus was enhanced when a one-sided 27 koruna per euro target was imposed.  With the threatened use of interventions, officials committed to preventing koruna appreciation, but not depreciation, from that level against the common European currency.  The exchange rate objective was to be retained for the ensuing year, and when a year was up at the November 6, 2014 meeting, officials extended the promise to keep it through the end of 2015.

Between August 2008 and November 2012, the two-week repo rate was reduced 11 times, falling from a high of 3.75% to its current level of 0.05%.

Copyright 2014, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



Comments are closed.