Arab Today, arab today cnb cuts rate to record low 005
Last Updated : GMT 18:19:32
Arab Today, arab today
Arab Today, arab today

CNB cuts rate to record low 0.05%

Arab Today, arab today

Arab Today, arab today CNB cuts rate to record low 0.05%

Prague - AFP

The Czech central bank CNB cut its key two-week interest rate by 0.2 percentage points to 0.05 percent on Thursday, the lowest level since the country became independent in 1993. \"The CNB board decided to cut its two-week repo rate by 20 basis points to a record low of 0.05 percent\", from Friday, the bank said in a statement. It also slashed the overnight Lombard rate by 0.5 percentage points to 0.25 percent and the overnight discount rate by 0.05 percentage points to 0.05 percent. The bank announced the cut an hour later than usual without explaining why. Analysts polled by the CTK news agency had expected the cut as the export-dependent Czech economy -- strongly linked to neighbour and EU powerhouse Germany -- slipped into recession early this year. But Michal Brozka, chief analyst with the Prague branch of Austria\'s Raiffeisenbank, also said the cut would have a negligible effect on the economy. \"The market will now focus on statements from CNB board members who have mentioned the possibility of non-standard steps -- forex intervention in particular,\" he added. The bank is due to hold a press conference at 14:30 GMT. Neil Shearing, chief emerging market economist at London-based Capital Economics, labelled the cut as a surprise, adding that the delay in the announcement \"could be a sign that the decision was carried by the narrowest of majorities.\" He said: \"Alternatively, it might suggest the board is treading very carefully with regards to its communication of what might happen next, and in particular to the possibility of a move towards unconventional policy easing.\" He commented that further non-standard steps were likely. \"With the economy mired in recession and the government wedded to fiscal austerity, monetary policy will have to provide the maximum possible support,\" he said. \"But at the same time, a move towards unconventional measures may not happen quickly – despite today’s decision, the CNB remains a highly conservative institution,\" added Shearing. The bank last changed rates at the end of September, when it cut the key rate by 25 basis points to 0.25 percent. The bank is also due to announce a new macroeconomic forecast later on Thursday. So far, it has forecast that the economy will contract by 0.9 percent this year before a pick-up in 2013, when growth of 0.8 percent is expected. In 2011, the Czech Republic -- an EU member since 2004 which is yet to join the eurozone -- posted economic growth of 1.7 percent. The finance ministry cut its economic growth forecasts for both 2012 and 2013 on Wednesday, predicting a 1.0-percent contraction this year and 0.7-percent growth in 2013. The forecast includes planned budget revenue from a proposed higher value added tax -- a move to be approved by parliament next week, which however threatens to topple the government. Prime Minister Petr Necas has said the vote is tantamount to a confidence motion, running the risk of a snap election as his government has lost a majority in parliament and is scrambling for support in talks with rebel lawmakers.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today cnb cuts rate to record low 005 Arab Today, arab today cnb cuts rate to record low 005

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today cnb cuts rate to record low 005 Arab Today, arab today cnb cuts rate to record low 005

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
Arab Today, arab today Seeks to move past rift with Israel

GMT 08:00 2017 Monday ,08 May

Seeks to move past rift with Israel
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday