The Czech competition watchdog UOHS approved the sale of CEZ’s Pocerady coal-fired power plant to Sev.en Energy Group subsidiary Vrsanska Uhelna, the Czech Office for Protection of Competition said on Thursday.
Czech working-day adjusted industrial output fell by 33.7% year-on-year in April amid the worst of the coronavirus outbreak when major factories shut to prevent the spread of the disease or were hit by a huge drop in orders. The fall was the largest in records going back to 2001 and was bigger than expected by a Reuters poll of analysts which forecast a 25.0% decrease.
The Czech lower house voted on Wednesday to allow the central bank to buy a wider selection of assets in the market from a bigger range of counterparties, expanding the bank’s toolkit.
The Czech National Bank is ready to cut interest rates further if needed, though there is minimal likelihood of using negative rates, Governor Jiri Rusnok was quoted as saying in an interview with Hospodarske Noviny on Tuesday. Rusnok also reiterated quantitative easing was not on the agenda when asked about legislation in parliament that will widen the bank’s bond-buying powers.
The Czech crown eased to its weakest level against euro since early January on Wednesday as the spread of coronavirus across the globe fuelled market selloff.
The Czech crown EURCZK= retreated from a seven-year high in early trade on Thursday, as it approached a new resistance level after a blistering start to the year. The crown has been the region’s best-performing currency so far this year, boosted by speculation that rates could rise in the face of stronger inflation. On Wednesday it hit an intraday high of 25.056, its strongest in seven years.
The Czech crown rose to a seven-year against the euro on Wednesday, extending a 2020 rally as improved sentiment and stronger-than-expected inflation data that raised expectations of a possible rate hike boosted markets.
The Czech crown gained past a key level against the euro on Tuesday to touch a 23-month high as markets priced in rising chances of an interest rate increase this year. Prague stocks also traded at their highest in nearly two years.
Another round of administrative savings would be better than letting the 2020 Czech central state budget deficit swell if an economic slowdown worsens and hits state income, Finance Minister Alena Schillerová said in an interview on Friday.
The Czech economy expanded by 0.6% in the second quarter versus the previous three months, supported mainly by consumption and beating estimates in a Reuters poll of economists, data showed on Wednesday.