Strong Koruna Changes Monetary Outlook

The Czech koruna, in tandem with other currencies in the central European region, has strengthened at a faster rate than expected, and is looking increasingly likely to affect the outlook for monetary policy. Strong GDP growth export data in 2005, together with robust inflows of direct investment and the likelihood of more of the same in 2006 has made the koruna an attractive currency to purchase. In addition, earlier fears over a spike in consumer price growth have subsided after inflation at the end of 2005 came in at a moderate 2.2%, and the Czech National Bank (CNB) has since

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