Czech Central Banker Quashes Bets on Earlier Koruna Cap Exit
- Rusnok sees exit from koruna cap regime in second half of 2017
- Forward rates show investors scaling back bets on earlier exit
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Czech central bank Governor Jiri Rusnok is standing by the regulator’s outlook for scrapping its unconventional monetary stimulus in the middle of next year or later, damping speculation that it might happen sooner.
The Czech National Bank’s forecast suggests the three-year-old currency limit could end “sometime in the second half” of 2017, Rusnok told reporters on Tuesday, adding that he personally sees the policy change more likely after “summer holidays” next year. The governor also said the central bank made no statements justifying increased bets on an earlier exit that recently appeared in the derivatives market.