Fresh exchange rate cap remains an option – CNB minutes
Minutes of extraordinary meeting say future exchange rate commitment cannot be ruled out
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 April
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Unconventional monetary policy
ECB to introduce structural bond portfolio and LTROs – Schnabel
Executive board member says QT worries have not materialised
QE should stabilise rather than stimulate – ECB’s Schnabel
Asset purchases have become conventional, but central banks should exercise caution
Risks facing central banks: action and inaction
Unlike Fed policy in the 1990s, central bank actions this century do not appear overly accommodative, writes Andrew Smithers
ECB economists highlight smooth quantitative tightening
Foreign investors are largest euro area securities holders, but households are buying more
The BoJ’s possible path to positive rates
Are market expectations about a spring shift from negative Japanese rates credible, asks Sayuri Shirai
Central banks should co-ordinate policy – Minneapolis Fed paper
Policy-makers should consider decisions’ effects on world real rate, authors say
BoJ’s Himino highlights benefits of ending negative rates
Deputy governor says there has been "solid progress" in firms’ price and wage-setting behaviour
Defending the basis
Benefits of additional Treasury liquidity may outweigh potential intervention costs during a hypothetical panic, writes Joseph Wang