Some Czech Policy Makers See Likely Need for Koruna Intervention

Some Czech policy makers see an increased likelihood that the central bank will need to sell the koruna to ease monetary conditions, minutes from the bank’s May 2 policy meeting showed today.

The Ceska Narodni Banka left the benchmark two-week repurchase rate at 0.05 percent for a fourth meeting last week. After three rate cuts last year exhausted the scope for further reductions, rate setters are debating whether to sell the koruna for the first time in more than a decade.