November 14, 2014 / 8:17 AM / in 5 years

Czech central bank board welcomes weaker crown -minutes

PRAGUE, Nov 14 (Reuters) - A majority of the Czech central bank (CNB) board welcomed the fact that the crown exchange rate was “clearly” weaker than the level set in the bank’s intervention regime, minutes from the last policy meeting on Nov. 6 showed on Friday.

The central bank launched interventions to weaken the crown a year ago, saying it would prevent the currency from firming beyond the level of 27 crowns per euro. This commitment is one-sided, leaving the crown to float freely on the weak side of that level.

“A majority of the board members welcomed this exchange rate development, stating that the current market-generated weaker exchange rate level was not only helping to return inflation to the 2 percent target more quickly, but also fostering continued sustainable growth of the economy,” the bank said.

The crown traded 0.1 percent weaker at 27.660 to the euro in early trading on Friday.

The board voted at the meeting to maintain the intervention regime and reiterated it would not end this policy before 2016. It also cut its growth and inflation forecasts for this year and next, citing headwinds from a slowing euro zone.

For the full text of the minutes please click on (Reporting by Robert Muller)

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