National Bank starts monetary intervention

The Czech National Bank launched the first monetary intervention since 2002 on Thursday afternoon. The bank’s council announced that it is aiming to lower the value of the crown to around 27 for one euro. Immediately after the announcement, the crown dropped from 25.8 to the euro to 26.63. Although there have been speculation about possible intervention for the last few months, many analysts have been surprised by the move, given that it did not seem necessary at this point, given the recent trade balance figures. The national bank’s council also voted not to change the interest rate.