CNB ends exchange rate commitment

At its extraordinary monetary policy meeting today, the CNB Bank Board decided to end the CNB’s exchange rate commitment. This decision takes effect immediately. The Bank Board did not discuss interest rate settings today.

The discontinuation of the use of the exchange rate as an additional monetary policy instrument means that the koruna exchange rate will move according to supply and demand on the foreign exchange market. As a result, it may fluctuate in either direction in the short term. The CNB stands ready to use its instruments to mitigate potential excessive exchange rate fluctuations if needed.

The two-week repo rate was maintained at 0.05%, the discount rate at 0.05% and the Lombard rate at 0.25 %.

A press conference of Governor Jiří Rusnok, intended for media representatives, is scheduled for 2:15 p.m.

Marek Zeman
Director, Communications Division