CNB rather surprisingly cut rates by 25 bps

The Czech currency firmed slightly against the euro during yesterday's session. The EUR/CZK opened at 31.520 and right before the CNB's rate decision touched the level of 31.470. The koruna fell vs. the euro to 31.560 for a short while as the 25bps rate cut was announced. The EUR/CZK returned back later and closed at 31.440.

Vis-a-vis the dollar, the koruna also gained as the dollar fell against the euro on the world markets. The USD/CZK opened at 27.360 and reached the 27.180 level at the end of trading. The koruna should not leave 31.350 - 31.550 brackets today, while it initiated at 31.435. The USD/CZK opened at 27.400 and should move between 27.000 - 27.500.

The Czech national bank cut its reporate by 25bps to 2.25% yesterday.

	open	high	low	close	today (26.6.)
EUR/CZK	31.520	31.560	31.440	31.440	31.435
USD/CZK	27.360	27.390	27.170	27.180	27.400

Martin Kocura, Investment Research, CSOB