The Czech central bank decided finally to intervene in the unfavorable strengthening of the Czech crown exchange rate against world major currencies. Initially, the CNB came out with a verbal intervention (at noon). CNB officials said the appreciation of crown had exceeded the potential consistent with transformation and fundamental factors in the Czech republic. The development could have strong destabilising impact on microsphere and macroeconomy. The Board of CNB considers recent strengthening of CZK as an exchange rate bubble; the development will affect their further steps. However, the market evaluated their verbal attempt as insufficient and the Czech crown appreciated consequently at 30.20 CZK/EUR from the pre-meeting level of 30.50 CZK/EUR. Two hours later CNB used its more useful tool and started to sell the Czech currency. The intervention was as successful as it helped CZK to fall at 30.80 CZK/EUR.
Yesterday, CSOB transferred to the Czech consolidation agency (CKA) another package of “grey” assets connected with ex-IPB. The third tranche had a nominal value of CZK 6.19bn. CSOB is expected to transfer another two parts of “grey” assets during April and May. CSOB decided to keep holding CZK 28bn from the total sum (127bn) of ”grey” assets, the rest CZK 99bn will be transferred to the CKA.
European central bank and British bank of England decided yesterday to leave their interest rates unchanged. The key ECB rate at 3.25% and the BoE repo rate stays at 4.0%.
Industrial output in Eurozone without change in January. It was down by 3.2% year-on year.
Retail sales in Eurozone rose by 0.6% m-o-m in January, respectively 0.7% y-o-y.
Cartel OPEC enjoys higher oil prices and it is not going to increase production. Ali Rodriguez, general secretary of the cartel, said yesterday. The oil price (Brent) has jumped to 27 USD/barrel during last days due to the escalation of the Israel-Palestinian conflict.
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Radim Krejčí