Change in the methodology used to calculate long-term interest rates for convergence purposes

On 7 May 2008, the Czech National Bank switched to a modified methodology for calculating long-term interest rates (LTIR) for convergence purposes. This change was discussed with and approved by the European Central Bank. The LTIR calculation method has been refined by switching from a calculation based on a single benchmark bond (the benchmark approach) to a calculation using a defined set of benchmark bonds (the basket of bonds approach).

The change is described in the document entitled “Change in the methodology for calculating the interest rate convergence criterion for the Czech Republic” published on the CNB website.

The LTIR time series was also revised as of 7 May 2008, starting in January 2004. The revised LTIR time series is available in the ARAD system together with an updated methodological sheet.