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 per euro ceiling of 27.0, enforced with intervention.  Along with robust domestic growth, “inflation was lower than forecasted in August….. Risks to the current forecast over the next few quarters are anti-inflationary, owing chiefly to lower food and fuel prices and administered energy prices. These risks are linked with the decline in world prices of oil and other commodities. This decline is leading to expectations of more subdued inflation in the global economy and means that the easy monetary policies in effect around the world will probably last longer than previously expected.”

Copyright 2015, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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