Business & Finance

25 November 2021, 7:38 pm. 1 minute

Reuters was first to report that the Czech National Bank is in a comfortable position with interest rates and it can tighten policy further at a more moderate pace, and possibly consider no rate hike at its December meeting, Governor Jiri Rusnok said last Thursday. The central bank stunned markets with a 125-basis-point rate hike at its latest policy meeting on Nov. 4, its biggest since 1997, which raised the key two-week repo rate to 2.75%, as the bank aims to prevent inflationary expectations from decoupling. Rusnok’s comments – which came after local market hours and just when the emergence of a new coronavirus variant started rattling world markets – caused a sharp repricing in rates when trading started the next day.

Market Impact

The crown currency lost 0.5% in after-market trading and another 0.7% in Friday morning trade.

Article Tags

Topics of Interest: Business & Finance

Type: Reuters Best

Sectors: FX & Fixed Income

Regions: Europe

Countries: Czech Republic

Win Types: Exclusivity

Story Types: Exclusive / Scoop

Media Types: Text

Customer Impact: Important Regional Story