2 Feb 2015
Weak CZK to support the Czech economy – KBC
FXStreet (Barcelona) - The KBC Bank Research Team views that a weak CZK might support the Czech economy and aid in raising inflation moderately later in 2015.
Key Quotes
“We expect ongoing weakness in CZK exchange rate to support the economy further. It should also partly offset the effect of falling oil and food prices and contribute to a moderate rise in inflation later in 2015.”
“We expect Czech inflation, after falling into negative territory in the first quarter, to reach 0.8% by the end of this year.”
“The Czech National Bank should be comfortable with that development and keep the exchange rate floor unchanged.”
Key Quotes
“We expect ongoing weakness in CZK exchange rate to support the economy further. It should also partly offset the effect of falling oil and food prices and contribute to a moderate rise in inflation later in 2015.”
“We expect Czech inflation, after falling into negative territory in the first quarter, to reach 0.8% by the end of this year.”
“The Czech National Bank should be comfortable with that development and keep the exchange rate floor unchanged.”