Lessons and Challenges for CESEE Countries and a Modern Europe
Edited by Ewald Nowotny, Doris Ritzberger-Grünwald and Helene Schuberth
Chapter 12: Ensuring monetary and financial stability in the Czech Republic
Gradual rise in inflation in 2014–2016 and further acceleration of inflation pressures in late 2016 and early 2017 created the conditions for fulfilling the Czech National Bank’s inflation target on a sustainable basis. At the beginning of 2017, the continuation of exchange rate commitment was no longer necessary. The exit from the commitment in April 2017 was the first step towards normalizing monetary policy, that is, towards using interest rates as the main instrument again. The second half of 2017 witnessed two repo rate increases, namely at the start of August and November. Overall, financial conditions are gradually becoming more restrictive, not only through increasing interest rates and appreciating koruna but also through macro-prudential tightening. The policies are thus quite consistent and not only act countercyclically, but also safeguard financial stability.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.