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Czech National Bank
Česká Národní Banka (Czech)
ČNB headquarters in Prague
ČNB headquarters in Prague
Headquarters Prague, Czech Republic
Coordinates 50°05′13″N 14°25′42″E / 50.08694°N 14.42833°E / 50.08694; 14.42833
Established January 1993
Governor Zdeněk Tůma
Central Bank of  Czech Republic
Currency Czech koruna
ISO 4217 Code CZK
Website www.cnb.cz/en/
Praha ceska narodni banka.JPG

The Czech National Bank (Czech: Česká Národní Banka, ČNB) is the central bank and financial market supervisor in the Czech Republic with its headquarters in Prague. The Bank's governor is Zdeněk Tůma.

Contents

Mission

Primary objective of ČNB as stated in the Act on ČNB is price stability. Secondary objective is to support a sustainable economic growth. Currently in employs inflation targeting monetary transmission mechanism. The goal is to stabilize inflation around 3.0% per annum.

Board members

  • Zdeněk Tůma (Governor)
  • Mojmír Hampl (Vice-Governor)
  • Miroslav Singer (Vice-Governor)
  • Robert Holman
  • Pavel Řežábek
  • Vladimír Tomšík
  • Eva Zamrazilová

Monetary policy instruments

  • Discount rate: 0.75%
  • 2-weeks repo rate: 1.75%
  • Lombard rate: 2.75%

The last change in monetary policy was on February 6, 2009 when the Bank lowered its benchmark interest rates by 50bp.

Banks can deposit excess liquidity overnight with ČNB at the discount rate and can borrow overnight funds at the lombard rate. Thus these two rates create a corridor for the short-term money market rates. Moreover ČNB conducts open market operations in the form of repurchase agreements (REPOs). The basic duration is 2 weeks. Currently ČNB is absorbing excess liquidity. The aim of these operations is to influence the short-term rates which subsequently affects the economic activity, flow of capital and inflation.

See also

External links

Coordinates: 50°05′13″N 14°25′42″E / 50.08694°N 14.42833°E / 50.08694; 14.42833








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