Czech central bank chief: rates to be above market pricing, strong crown welcome

Kitco Media
By Reuters
Published:
Updated:
Reuters
PRAGUE, Feb 2 (Reuters) - A strong Czech crown is very important for the central bank to help it fight against inflation, and interest rates will remain higher than the market has priced in, central bank Governor Ales Michl said on Thursday after the bank held interest rates flat at 7.00%. The bank signalled rate stability ahead for an unspecified period. It also said it would be ready to hike rates if risks to the forecast materialised. The market has priced in a decrease in rates by nearly 150 basis points on one-year horizon, according to forward rate agreements earlier on Thursday. (Reporting by Jan Lopatka and Robert Muller; Editing by Alison Williams)

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