The Czech koruna gained today as the nation’s central bank kept monetary policy unchanged and refused to intervene by selling the currency. Chances for an intervention in the future remain high though.
The Czech National Bank kept interest rates near zero at today meeting. Governor Miroslav Singer was calling for currency sales to aid economic recovery. For now, other policy makers voted down this offer.
Probability of an intervention remains high as inflation continues to slow. The central bank said:
The CNB is ready to use the exchange rate if further monetary policy easing becomes necessary. The probability of launching foreign exchange interventions has not changed and remains high.
USD/CZK was down from 18.9935 to 18.9884 as of 23:04 GMT today and slid as low as 18.9778 intraday. EUR/CZK declined from 25.6190 to 25.6130 and its daily minimum was at 25.6040.
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