Czech National Bank’s (CNB) board believes that the exchange rate commitment will likely be terminated in mid-2017. This stems from CNB’s monetary section’s director Tomáš Holub’s presenation at the HSBC roundtable held on November 10, 2016. According to the central bank, the termination of the exchange rate commitment is subject to positive economic development, but cannot come earlier than in Q2 2017. Mr. Holub says that the abandoning of the interventions depends primarily on sustainable fulfilment of the 2% inflation target even after the termination of the intervention regime, so that new non-conventional monetary policy measures have to be adopted.
