At its most recent meeting on 5 November, the Czech National Bank’s Board discussed extending the duration of its exchange rate commitment. It agreed that the commitment’s discontinuation would probably shift towards the end of 2016.
The Bank Board also decided unanimously to keep interest rates unchanged at technical zero. Moreover, it 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 of the koruna is kept close to CZK 27 to the euro.
During 2015, the Bank Board had repeatedly stated that the CNB would not discontinue the use of the exchange rate as a monetary policy instrument before the second half of 2016.
Contact:
Jana Bašeová
Relationship Manager
Global Securities Services Czech Republic
jana.baseova@unicreditgroup.cz