Czech Central Bank See FX Cap Exit By The End of Next Year


The Central Bank of the Czech Republic today announced that the bank’s board agreed that the discontinuation of its cap on koruna gains "would probably shift to around the end of 2016", following its latest monetary policy meeting. Other notable comments from the statement are as follows:

  • Bank raises 2015 GDP growth forecast to 4.7% from 3.8%
  • Bank keeps its 2016 GDP growth forecast unchanged at 2.8%, raises 2017 estimate to 2.9% from 2.8%
  • Bank raises Q4 2016 CPI forecast to 1.9%, from 1.8%, raises Q1 2017 CPI forecast to 2.2% from 2.1%
  • Bank says inflation will hit 2% target at monetary policy horizon, will be slightly above target in 2017