Czech Koruna Cap Questioned as Premier Backs Central Bank

Czech Prime Minister Bohuslav Sobotka backed the central bank’s autonomy in shaping monetary policy after the country’s president called for an end to currency interventions to weaken the koruna.

“The country has an independent currency” and there are “certain attributes naturally linked with that, including the authority of the central bank,” Sobotka said in an interview late yesterday. “I believe there’re positive outlooks in terms of Czech economic growth. Low inflation pressures come from outside the Czech economy.”