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Czech central bank governor says crown key for future rate hikes
May 4, 2017 / 12:54 PM / 7 months ago

Czech central bank governor says crown key for future rate hikes

PRAGUE, May 4 (Reuters) - The development of the crown’s exchange rate will be a key factor for the Czech central bank’s decision-making on interest rate hikes, Governor Jiri Rusnok said on Thursday.

He said a protracted period of the crown near its former cap of 27 per euro would mean more need for policy tightening than if the currency firms.

“If this very slight or almost no firming from the level of the exchange rate commitment lasts longer, it is logical that... it will create more need for action, for a move toward normalisation of monetary conditions...that means gradual detachment of interest rates from the zero level,” Rusnok told reporters. (Reporting by Jan Lopatka and Petra Vodstrcilova)

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