czech republic

Euroskeptic and on the dovish wing: that’s the quick profile of the newest member of the central bank board, Kamil Janacek. Eurosceptic president Vaclav Klaus is due to make the announcement about now. Currently chief economist of Komercni Banka, a Czech bank, Mr Janacek, 67, has known Mr Klaus for more than 45 years. He will be filling the only vacancy on the seven-member board.

The President is rearranging several key figures right now. Current board member Vladimír Tomšík, just 36, is due to be confirmed as deputy governor today, and new Czech prime minister Petr Necas was sworn in yesterday. Read more

Current vice-governor Miroslav Singer will start his new role as governor of the Czech National Bank from July 1. He will replace Zdeněk Tůma, who announced in April that he would step down seven months early, saying it was best for the Bank “if the period of uncertainty connected with the changes in the Bank Board is as short as possible”.

Mr Singer has been appointed for a term of six years, and will become the third governor since the Bank’s inception in 1993. As Vice-Governor, Miroslav Singer has been overseeing the activities of the departments responsible for financial market regulation and analyses, licensing and enforcement and financial market supervision since early 2007.

The governor of the Czech National Bank, Zdeněk Tůma, announced today that he is resigning with effect from June 30, 2010. Mr Tůma, 49, delivered his resignation letter to President Václav Klaus on Tuesday afternoon. Mr Tůma became governor in December 2000. This term, his second, had another seven months to run: it was due to end February 12, 2011.

His reasons seem complex. He cites minimising uncertainty as a factor. Two other central bank officials’ terms end on February 12, 2011, and he suggests it’s a bad idea for them all to go together: Read more

The Czech National Bank Board decided at its meeting today to lower the two-week repo rate by 25 basis points to 1 per cent. The Lombard rate was also lowered by 25 basis points to 2 per cent. The discount rate remains unchanged at 0.25 per cent. The new interest rate levels come into effect on December 17, 2009.