Czech Republic: Monetary Interventions more Probable

BusinessEconomy ♦ Published: September 11, 2013; 09:05 ♦ (Vindobona)

Because of an unexpectedly lower inflation rate, foreign exchange interventions are more likely to come.

Czech Republic: Monetary Interventions more Probable / Picture: © Wikimedia Commons [CC0 1.0] / Pixabay [CC0 Creative Commons]

According to members of CNB (Czech National Bank), the Czech Republic needs further monetary policy steps. CNB is considering starting currency interventions. The interest rate already is at a technical zero. Since the second half of 2012, CNB has lowered the base rate gradually down to 0.05%. Thus, the last remaining instrument is to intervene against the crown. The last foreign…