WASHINGTON: The unemployment rate in the Czech Republic fell unexpectedly in the month on October, official data showed on Thursday. Data released by Czech Statistical Office showed that Czech unemployment rate fell to a seasonally adjusted 4.9 percent, from 5.0 percent in the preceding month. Czech unemployment rate fell less than market expectations for an unchanged reading at 5.0 percent last month.
This year, the Czech central bank had to continue to actively defend the floor using foreign exchange intervention. The need for intervention has risen as the Czech National Bank board is actively communicating that it would end foreign exchange targeting around mid of next year. As the deadline approaches, there might be solid speculative inflows and appreciation pressure on the CZK. After the floor is removed, the central bank would prevent the CZK from appreciating by using negative interest rates instead of a weaker exchange rate, noted Commerzbank in a research report.
