Czech National Bank leaves interest rates, low crown target unchanged


The Czech National Bank (ČNB) kept two of its main economic instruments unchanged on Thursday. The main interest rate, the two-week repo rate was maintained at 0.05%. The central bank also said that it would be keeping to its 27 crowns or lower exchange rate target against the single currency euro. That means that the bank is committed to intervening on the currency markets if the crown strengthens beyond that target. The controversial target has been in place since November 2013. Inflation would have to rise to near 2.0 percent and interest rates rise before the bank could realistically quit the low crown policy.