Czech central bank: can cut countercyclical buffer rate if uncertainties decrease

Kitco Media
By Reuters
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Updated:
Reuters
PRAGUE, March 10 (Reuters) - The Czech National Bank (CNB) can lower the countercyclical buffer rate set for banks if geopolitical and cyclical uncertainties decrease, the central bank said on Friday. "Should these uncertainties decrease, the CNB is ready to start gradually lowering the countercyclical capital buffer rate if it concludes that the size of the cyclical credit risks in banks' balance sheets covered by the countercyclical capital buffer rate is decreasing," the central bank said. On Thursday, the central bank decided to leave the extra buffer rate for banks, applied in periods of excessive lending growth, at 2.50%. The rate rose to 2.00% at the start of the year and is set to increase to 2.50% from April, based on past decisions. (Reporting by Robert Muller; Editing by Alex Richardson)

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