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CZK weakens ahead of CNB meeting – KBC

FXStreet (Barcelona) - The KBC Bank Research Desk shares that CZK lost 0.4% ahead of the CNB meeting despite assuring statements from the CNB board.

Key Quotes

“Central European currencies did not fare well yesterday. The Czech koruna lost 0.4 %, despite CNB Vice-Governor Tomšík´s statement that the Czech National Bank did not see any reason for modification of its intervention policy.”

“Karel Janáček, another CNB Board member, reiterated yesterday that low inflation in the Czech economy was not a cause for concern, and that the CNB would not surprise markets.”

“Despite both reassuring statements, markets´ jitters have intensified ahead of the next CNB Board meeting (scheduled for February 5).”

“In Poland, the zloty slipped by 0.5 % after statisticians had released data on weaker-than-expected December retail sales growth (+1.8 % y/y), reviving speculations about approaching rate cuts.”

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