Czech Republic: Monetary Policy to Loosen Further

Politics ♦ Published: September 3, 2013; 06:45 ♦ (Vindobona)

According to the member of CNB (Czech National Bank) Lubomir Lizal, the country needs further monetary policy steps. CNB is considering starting currency interventions.

Czech Republic: Monetary Policy to Loosen Further / Picture: © Czech National Bank

As the interest rate was cut to a technical zero, the Czech National Bank considers intervening against the crown. Since the second half of 2012, CNB has lowered the base rate gradually down to 0.05%. In the medium term, the interest rate will be kept at that record low. In July, the board of CNB resolved to keep the base rate at 0.05%. The decision was no surprise as there was no…