Anke Martens from ABN Amro summarize the situation of the Czech economy which has good health. EUR/CZK trades at 24.7815 as has fallen since January.
Key quotes
“Czech Republic’s GDP increased a respectable 2.6%.”
“The Czech Republic is in a favorable position in terms of fiscal space: with the government budget in surplus and government debt low and falling, the country has more room to manoeuvre in case of a larger-than-expected downturn.”
“The Czech Republic is a exception in terms of monetary policy: while its Central European counterparts are emphasising growth over inflation, the Czech National Bank has been tightening, most recently on 6 February, when it narrowly voted to raise the policy interest rate to 2.25% as inflation rose above the Central Bank’s 1-3% tolerance band.”
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