Czech National Bank

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Czech National Bank in Prague

Czech National Bank (Czech: Česká národní banka, ČNB) is central bank and supervisor of financial market in the Czech Republic with the seat in Prague. The governor is Zdeněk Tůma.

1 Mission
2 Board members
3 Monetary policy instruments
4 See also
5 External links

[edit] 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% per annum.

[edit] Board members

Zdeněk Tůma (Governor)
Luděk Niedermayer (Vice-Governor)
Miroslav Singer (Vice-Governor)
Mojmír Hampl
Robert Holman
Pavel Řežábek
Vladimír Tomšík

[edit] Monetary policy instruments

Discount rate: 1.50%
2-weeks repo rate: 2.50%
Lombard rate: 3.50%

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.