CNB cuts GDP growth forecast from 0.5% to -1.5%

The CNB cut its GDP growth forecast for this year from -0.5% to -1.5%. The main factor was the unexpected 2.4% drop in 1Q13. In contrast, the CNB raised its forecast for next year from +1.8% to +2.1%. Also, the crown weakened to CZK 26.017 against the euro yesterday evening after Gov. Singer used a press conference to verbally intervene against the Czech currency. In its first vote on the matter, the board went against currency intervention, but Singer said that it seemed to him that some of those on the board who voted against intervention shifted more in this direction.