Politics

Czech Republic: CNB to Intervene in Forex Market

Published: November 11, 2013; 10:49 · (Vindobona)

After the Czech koruna (CZK) was devalued, the Czech National Bank (CNB) is keen on preventing a deflation. However, the key rate cannot be cut anymore as it is close to zero.

Czech Republic: CNB to Intervene in Forex Market / Picture: © Czech National Bank

Since the reference rate is already at a record low, there is no downside potential anymore. As a result, weakening the Czech koruna is the last instrument for the CNB, which fears a drop in consumer prices and has been warning of the danger of a deflation for months, which could stop economic growth for a significant period of time.

Last week the CNB Bank Board decided at its…

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Czech Republic: CNB to Intervene in Forex Market

After the Czech koruna (CZK) was devalued, the Czech National Bank (CNB) is keen on preventing a deflation. However, the key rate cannot be cut anymore as it is close to zero.

Join us to succeed in Vienna!
Sign up to read articles for free and to get personalized updates on the events that interest you.