Reuters first to report Czech central bank rates can rise slower; market reacts - Reuters News Agency
Business & Finance

Reuters first to report Czech central bank rates can rise slower; market reacts

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
The Czech National Bank is seen in central Prague, Czech Republic, August 3, 2017.   REUTERS/David W Cerny
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