Czech President to Reveal New Central Bank Board Make Up May 25

  • Two policy makers to conclude their terms at the end of June
  • Board member Rusnok slated to take over from Governor Singer

Czech President Milos Zeman has chosen who will sit on the central bank’s rate-setting board after two policy makers finish their terms end at the end of June.

The president will name the new head of the Czech National Bank and make additional appointments May 25, spokesman Jiri Ovcacek said in an e-mailed response to questions on Monday. Zeman will name a new face to assume the spot held by board member Jiri Rusnok, who the president said last year will replace Miroslav Singer as governor. Ovcacek declined to say whether Zeman will grant a second six-year post to Kamil Janacek, whose term also expires on June 30, or replace him with another new board member.

Zeman holds the sole right to name central bankers and the changes will be his biggest venture into shaping monetary policy since he became the country’s first head of state elected by popular vote three years ago. The president named Rusnok, a former interim prime minister and his long-time ally, to the board in 2014. He picked him to become governor even though they disagreed about the bank’s unconventional monetary stimulus.

Zeman has criticized the regulator’s 2013 decision to weaken the koruna and limit its gains with a Swiss-style cap to avert deflation risks and support the economy. Rusnok has defended the policy, saying it’s helped the recovery from a record-long recession. While the bank’s guidance says it will probably scrap the currency cap in mid-2017, Rusnok has said he sees a bigger chance of returning to standard monetary policy in the second half of next year.

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