The Czech koruna was soft today after yesterday’s announcement of the central bank about an intervention aiming at weakening the currency. The bank left its interest rates unchanged.
The Czech National Bank left interest rates unchanged at yesterday’s meeting, including the two-week repo rate and the discount rate, which stayed at 0.05 percent. With not room to cut rates further, the central bank referred to an intervention on the Forex market as a way to stimulate the economy, announcing:
The Bank Board also decided to start using the exchange rate as an additional instrument for easing the monetary conditions. The CNB will intervene on the foreign exchange market to weaken the koruna so that the exchange rate of the koruna against the euro is close to CZK 27.
USD/CZK was up from 20.1039 to 20.1180 as of 4:26 GMT today.
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