Surprise rate hike of the Czech Central Bank

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Surprise rate hike of the Czech Central Bank

Bloomberg: World Gets First Rate Hike of 2020 With Surprise Czech Move

Article published: Feb 6, 2020

IB Economics syllabus: Macroeconomics, International economics (monetary policy, exchange rates)

The first Central Bank to increase interest rates was the Czech National Bank – and the move surprised the markets as no one was expecting a rate hike. As a result, the koruna (the Czech currency) appreciated by almost 1% per euro. Thus, the Checz Republic has been the only nation in the world this year to have increased their interest rates as per the picture below:

Source of image (at the top): Photo by Mårten on Unsplash

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By | 2020-02-10T10:25:37+00:00 February 10th, 2020|International Economics, Macro|Comments Off on Surprise rate hike of the Czech Central Bank

About the Author:

My name is Daniel Szekely and I work as an IB Economics tutor, examiner and teacher. Having earned an MA degree in Economics at the University of Aberdeen, I started my career as a financial analyst at Morgan Stanley, one of the largest investment banks of the world. Yet, despite the promising career prospects of the banking industry, I decided to make a larger social impact by becoming a teacher. Currently, I teach IB Economics at SEK Budapest International School and have been an examiner for over 6 years. I started EconDaddy as a simple blog to share great articles with my students and others taking IB Economics around the world to use for their commentaries. Being a practicing IB Economics tutor, I have first hand insight into the most common mistakes of students, so the EconDaddy blog now also provides exam and commentary writing tips.

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