Koruna-Cap Exit on Track as Czechs See Inflation on Goal Sooner
- Policy board holds rates at ‘technical zero,’ keeps koruna cap
- Rate setters shelve discussion on negative interest rates
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The Czech Republic’s newly revamped rate-setting board shelved a debate over negative interest rates as fresh economic projections forecast price growth may reach its target sooner for the first time in two years.
In an inaugural decision under new Governor Jiri Rusnok, the Czech National Bank left its benchmark rate at what it calls a “technical zero” of 0.05 percent and kept a limit on the currency at around 27 per euro on Thursday. The board reiterated its plan to return the koruna to a float in around the middle of 2017.