Economics
Czechs Delay Koruna Cap Exit, Mull More Easing to Offset ECB
- Central bank won't scrap limit on koruna gains before 2017
- Bank board discussed negative interest rates again on Thursday
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The Czech central bank delayed the exit from its regime of limiting koruna gains until 2017 and returned to considering negative interest rates as a possible tool to help mitigate the impact euro-zone quantitative easing is having on the economy.
The Czech National Bank held its benchmark two-week interest rate at 0.05 percent for a 26th meeting on Thursday, matching the forecasts of all 17 analysts in a Bloomberg survey. The bank board ruled out scrapping the currency cap in 2016, compared with previous guidance that it would end at around end-year. It sees the exit from the regime as probable in the first half of 2017, Governor Miroslav Singer told reporters after the policy meeting.