The koruna last traded stronger against the single European currency for the last time on 21 February. It is the strongest against the dollar since February 27.
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Today, the crown was helped by the positive mood on world fortresses, caused by the talks between the representatives of Russia and Ukraine in Istanbul, says Jana Steckerová from Komerční banka.
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However, the strengthening of the koruna was less pronounced than in other Central European currencies.
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“It is probably waiting for the results of Thursday’s meeting of the Czech National Bank,” believes the economist. According to economists contacted by ČTK, the Bank Board will probably raise the key interest rate by 0.5 percentage point to five percent.
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However, the market includes an increase in the key rate by 75 basis points, says Stecker. “A 50-point tightening of monetary conditions would be a disappointment for the markets,” she added.
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The reason for the expected rate hike is the continuing rise in inflation exacerbated by the war in Ukraine and the central bank’s efforts to curb inflation expectations, meaning that inflation will continue to rise rapidly.
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At the last monetary meeting in early February, the board raised the key interest rate by 0.75 percentage point to 4.5 percent.
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Czech exchange rate:
| Previous conclusion | Tuesday around 5:00 p.m. | |
| CZK / EUR | 24,60 | 24,49 |
| CZK / USD | 22,42 | 22,06 |
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