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Czech central bank board member Benda: will not allow crown jump
January 10, 2017 / 1:30 PM / 10 months ago

Czech central bank board member Benda: will not allow crown jump

PRAGUE, Jan 10 (Reuters) - The Czech crown will not jump after the central bank ends its weak-crown policy to levels seen before it entered the regime in 2013, central bank board member Vojtech Benda said in a presentation from a business breakfast on Tuesday, reiterating the central bank’s stance.

The bank has kept the crown on the weak side of 27 per euro since November 2013 to help revive inflation. The crown had traded around 25.75 when the bank started intervening.

Investors have piled into the crown in recent months as rising inflation brings an expected end of the weak-crown policy closer.

The bank has said it would be ready to intervene in the market if the crown firms too much, and Benda reiterated that stance in the presentation delivered on Tuesday morning.

He said the bank’s stance was that the policy will not be abandoned before the end of the first quarter, and that it saw an exit likely in mid-2017. (Reporting by Jan Lopatka)

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