9th November 2014

Competitiveness: A year after monetary intervention of CNB

Although it has been a year since the introduction of Czech National Bank intervention to weaken Czech currency both professionals and general public still can’t agree whether it was good or bad measure. Present Governor of Czech National Bank Miroslav Singer defends these steps as necessary and that the Czech economy with the help of weaker currency is slowly but steadily growing. When asked member of the Confederation of Industry of the Czech Republic Zbyněk Frolík said that that the confederation as a whole still couldn’t decide whether the steps taken by Czech National Bank were for the good or for the bad. Professor Richard Hindls from the University of Economics, Prague said that the economy tends to react more slowly and the matter is more complex as consumers always tend to lag behind in their behavior slowing the impact of upcoming recession at first and reacting later when the economy begins to grow again. He also added that the economy is always influenced by more than one factor including weak Eurozone or influence of international situations and conflicts as it is the case of Ukraine.

Members of the American Chamber of Commerce in the Czech Republic