Fresh exchange rate cap remains an option – CNB minutes

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Statue on the CNB. Photo: Mike Beltzner

The minutes of the extraordinary policy meeting that saw the Czech National Bank (CNB) remove its exchange rate commitment show the central bank views the policy as successful and is willing to use it again. “Renewed use of the exchange rate or some other suitable unconventional instrument could not be ruled out if a risk of deflation associated with weak demand in the economy and unanchored inflation expectations were to re-emerge in the future,” say the minutes, which were published on Apr