Thursday, June 28, 2007

Czech Koruna Drops Versus Euro; Central Bank Keeps Interest Rates on Hold

(Bloomberg) -- The Czech koruna fell against the
euro after the country's central bank kept its benchmark interest
rate unchanged at the lowest in the European Union.

The Prague-based policy-making board voted to leave
borrowing costs at 2.75 percent as it awaits a new economic
forecast in July, matching the prediction of all 21 economists in
a Bloomberg survey. Because of its low interest rates, investors
use the koruna in the so-called carry-trade, funding investments
in other higher-yielding assets.


Read more at Bloomberg Currencies News

No comments: