May 16, 2014 / 7:13 AM / 4 years ago

Czech minutes: higher chance of later exit from intervention regime

PRAGUE, May 16 (Reuters) - The Czech central bank’s board agreed there was a higher probability of a later exit from its exchange rate intervention regime, minutes from the May 7 meeting showed on Friday.

“A majority of the board members agreed that, in light of the decrease in the inflation outlook, the probability of a later exit from the exchange rate commitment was increasing,” the minutes said.

The bank has pledged to keep the crown exchange rate close to 27 per euro until at least early 2015. It reiterated last week it saw the level of 27 as appropriate.

The commitment to the interventions, launched last November after already cutting interest rates to near zero, is one-sided, with the bank letting the crown float freely on the weaker side of that level.

The board also agreed the risk to the bank’s new forecast were slightly anti-inflationary, the minutes said. (Reporting by Robert Muller; Editing by Jason Hovet)

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