Q: In 2017 you ended the koruna’s exchange rate commitment and successfully lifted the cap without causing any major market fluctuation. What can be expected in 2018?
A: Inflation targeting, which the Czech National Bank [CNB] introduced 20 years ago, remains the key pillar of our monetary policy. After ending the exchange rate commitment in April 2017, we started the process of normalising monetary policy, i.e. returning interest rates to their usual or pre-crisis levels. We raised interest rates in 2017, and we will continue to do so.
