Jiri Rusnok becomes the new Czech Prime Minister
NBH lowered rates by 25 bps and is ready to cut again
Milos Zeman, the Czech President, has appointed Jiri Rusnok (Minister of Finance during Zeman’s administration) as the new Prime Minister on Tuesday. As we have already written in our yesterday’s report, it was an unprecedented decision because Mr. Zeman acted on his own, disregarding expressed will of majority of deputies in the Parliament (therefore, the new government will likely fail to get parliamentary approval). Nevertheless, Zeman´s decision has had impact neither on the koruna nor on government bonds; in fact, yield of the ten year government bond fell by about 10 basis points yesterday.
Read the full report: FX Daily
KBC