President Havel is going to announce who is new CNB Governor and to appoint new members of the CNB board. More information we bring immediately after the press release.
The Cabinet raised the minimum monthly wage yesterday from CZK 4,500 to 5,000, effective from the beginning of 2001. On an after-tax basis the new minimum wage amounts to CZK 4,184.
The Czech koruna climbed to its strongest level ever against the euro yesterday. The koruna bids hit 34.30 against euro in mid-afternoon. After some corrections it settled on 34.35. Speculations about the possibility of the central bank contra-intervention arose again. However, nothing happened and the market has stabilised between 34.30 and 34.40 CZK/EUR. The jump in the CZK/EUR exchange rate resulted to an appreciation against the US dollar as well. The koruna was at 40.76 to the dollar at close from 40.91 on Tuesday.
Bonds were quite steady again on Wednesday. In slightly bullish mood, but not very active market prices are bit higher than previous closings. Some market makers speculated again on the old-taxed bonds, as the new law seem to will be rejected in Senate. Konsolidacni issue the longest of old-taxed ones, jumped up by some 70 bps, then corrected slightly, but is still some 50 bps higher. Other old-taxed bonds strengthened as well.
We expect Thursday to be slightly bullish, but quiet again.
Current benchmark prices: MoF 6.75/05 98.65-95 (+5 bps), MoF 6.30/07 93.55-85 (+5 bps), MoF 6.40/10 91.55-85 (+10 bps).