Central bank keeps rates unchanged, continues exchange rate interventions

The Czech National Bank on Wednesday announced it would keep its interest rates unchanged at 0.05 percent, and would continue intervening against the Czech crown to keep the exchange rate at around 27 crowns per euro. Last month, the bank said it would continue intervening at foreign exchange markets until 2016, primarily to curb the risk of deflation. The bank’s key two-week repo rate has been kept at the historic low since November 2012. An analyst for the Home Credit loans provider quoted by the news agency ČTK said he was not surprised by the move, and suggested that foreign exchange interventions could possibly end in a year’s time.

Author: Jan Richter