The Czech central bank is likely to keep the crown weak until the first half of 2017 and it is not expected to adjust its policy when it next meets, a Reuters poll showed on Wednesday. At its last policy meeting on February 4, the Czech National Bank (CNB) board ruled out halting its weak crown policy in 2016, prolonging a policy of intervention. But it said it may stop using the tool in the first half of next year.
In the poll, six of 11 analysts saw an end to the weak crown policy then. Five expected it later in
2017. Compared to February, eight respondents moved their expectations to a later date.
The seven-strong board also debated negative rates at the February meeting, but several central bankers have said since then they were unlikely to be used.
The Czech Republic became the first emerging market with negative bond yields and analysts are debating, with the European Central Bank (ECB) having cut official rates deeper into negative territory, whether the Czechs will follow suit. Only two analysts expected it would.
Governor Miroslav Singer, whose term ends in July, has said the bank was "technically and legally" ready for negative rates, but it would rather avoid them.
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