PRAGUE, April 7 Czech central bank board members
agreed at their last ordinary policy meeting on March 30 that
there was no longer need for the weak-crown policy, minutes from
the meeting showed on Friday.
The bank ditched its cap on the crown's exchange rate on
Thursday, making the decision at a weekly non-rate setting
meeting, its first scheduled opportunity to scrap the policy
since a promise to leave it in place until the end of March
"The prevailing view was that maintaining the exchange rate
commitment was no longer consistent with the macroeconomic
conditions in the current situation," the minutes of the March
30 meeting said.
"Moreover, continuing it could increase the risk of
macrofinancial imbalances. In addition, delaying the exit by
just a few months – given the current level of uncertainty –
would not substantially enhance the sustainability of fulfilment
of the inflation target in the future."
(Reporting by Robert Muller)