The Czech central bank announced yesterday to begin paying interest on the required minimum reserves it holds for banks. It will pay the two-week repo rate. As of July 12 minimum reserves will only be required for bank and construction-savings deposits with maturity of less than two years
The Czech central bank said it sees net at the end of the first quarter at 2.7-3.1 percent, with headline inflation at the end of March at around 4.1 percent, with the producer price index at 4.4-4.7 percent.
Trading in the Czech crown was volatile on Thursday after the U.S. Federal Reserve cut interest rates, and a day's low of 34.90 to the euro was hit before the crown recovered slightly in the afternoon. Late on Thursday the koruna was trading at 34.85/88 to the euro from the morning's 34.83/86 and from 34.67/70 late Wednesday. Koruna/dollar firmed to 36.99/04 from the morning's 37.06/09 and 37.25/28 late Wednesday.
The state 6.40/10 up five points at 98.85 from late Wednesday, yielding 6.57/52 percent. The state 6.75/05 down 15 points at 102.80/10, yielding 5.95/86 percent. The recently auctioned 6.95/16 down 30 points at 102.90/20, yielding 6.64/61.