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Czech central bank March 30 minutes: crown cap no longer consistent with econ conditions
April 7, 2017 / 7:07 AM / 8 months ago

Czech central bank March 30 minutes: crown cap no longer consistent with econ conditions

PRAGUE, April 7 (Reuters) - Czech central bank board members agreed at their last ordinary policy meeting on March 30 that there was no longer need for the weak-crown policy, minutes from the meeting showed on Friday.

The bank ditched its cap on the crown’s exchange rate on Thursday, making the decision at a weekly non-rate setting meeting, its first scheduled opportunity to scrap the policy since a promise to leave it in place until the end of March expired.

“The prevailing view was that maintaining the exchange rate commitment was no longer consistent with the macroeconomic conditions in the current situation,” the minutes of the March 30 meeting said.

“Moreover, continuing it could increase the risk of macrofinancial imbalances. In addition, delaying the exit by just a few months – given the current level of uncertainty – would not substantially enhance the sustainability of fulfilment of the inflation target in the future.” (Reporting by Robert Muller)

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