The Czech central bank (the CNB) board left interest rates unchanged yesterday. The CNB expects to undershoot its own net inflation target for year-end 2000 and meet the target for year-end 2001. The no-change decision was anticipated and we do not expect any changes in interest rates in the near future. As for the koruna, CNB Vice Governor Zdenek Tuma indicated that the current exchange rate does not present a problem for the CNB, but that the central bank would prevent further appreciation. The koruna initially strengthened, but it later stabilized at the level where it began the day — 35.55 CZK/EUR.
(Ondřej Daťka)