EUR/CZK: CNB Vice Governor sees February rate hike chances 50/50

• The CNB Vice Governor Tomas Nidetzky said that lower Czech crown compared to forecast does not automatically imply a rate hike.
• CNB’s Nidetzky said he sees 50/50 chances of voting in favor of a rate hike on February 7 meeting.
• Czech crown is trading little changed against the Euro after the comments.

The EUR/CZK is trading little changed on the upside at around 25.780 after the Czech National Bank Vice Governor Tomas Nidetzky said he sees 50/50 chances of him voting in favor of a rate hike next week on the regular monetary policy meeting.

The Euro was initially boosted and rose to 25.808 against the Czech crown after the initial dovish call from the central bank Vice Governor., but later retreated to 25.760 level.

Vice Governor Nidetzky also said that lower Czech crown compared to central bank’s forecast does not automatically imply a rate hike.

Czech crown is the Central European currency with a very stable economy trading in a tight range of 25.200-26.200 for more than a year now. The CNB, Czech central bank, hiked rates from the post-crisis low of 0.05% to current level of 1.75% while hiking rates five times in 2018.