The CNB postpones exit from exchange rate targeting
As widely expected, the CNB Bank Board decided yesterday to maintain the regime of exchange rate commitment in place longer than it had communicated at the time of its introduction in November last year. According to the Board´s statement, the Bank would not discontinue the use of the exchange rate as a monetary policy instrument before 2015 Q2, and it did not rule out a further shift of the exit from this regime. Although CNB’s governor Singer expressed moderate satisfaction with the pace of economic recovery, the Board considers risks to the current forecast slightly anti-inflationary. Weak price growth abroad, slow observed rise of domestic food prices and their short-term outlook belong to principle downside risks.
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