The Bank Board of the Czech National Bank decided unanimously to keep interest rates unchanged at technical zero. The Bank Board also decided to continue using the exchange rate as an additional instrument for easing the monetary conditions and confirmed the CNB’s commitment to intervene on the foreign exchange market, if needed, to weaken the koruna so that the exchange rate is kept close to CZK 27 to the euro.
In line with this, the Czech National Bank still stands ready to intervene automatically, i.e. without the need for an additional decision by the Bank Board, and without any time or volume limits. The asymmetric nature of this exchange rate commitment, namely the willingness to only intervene against appreciation of the koruna below the announced level, is unchanged.
Contact:
Jana Bašeová, Relationship Manager, Global Securities Services, Czech Republic
jana.baseova@unicreditgroup.cz