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The Czech National Bank?s Inflation Report for Q1 2000

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    Abstract

    Q1 2000 saw moderate inflation, signs of economic recovery, a worsening of the trade balance, and the continuing appreciation of the koruna?s exchange rate against the euro. Inflation factors acted markedly differently than in 1998 and H1 1999, when the price trend had been affected by a combination of low cost- and demand price pressures. From H2 1999 onward, cost pressures gradually mounted, largely as a result of the rising prices of energy raw materials on world markets. However, despite the gradual economic recovery, demand pressures remained subdued. This altered macroeconomic framework will persist throughout the remainder of 2000 H1. CNB interest rates remained unchanged in Q1 2000. At the end of March, the central bank intervened in the foreign-exchange market with the aim of correcting the koruna?s exchange-rate trend.

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    File URL: http://journal.fsv.cuni.cz/mag/article/show/id/488
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    Bibliographic Info

    Article provided by Charles University Prague, Faculty of Social Sciences in its journal Finance a uver - Czech Journal of Economics and Finance.

    Volume (Year): 50 (2000)
    Issue (Month): 7-8 (July)
    Pages: 421-429

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    Handle: RePEc:fau:fauart:v:50:y:2000:i:7-8:p:421-429

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    Keywords: inflation; central bank; monetary policy;

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