By CentralBankNews.info
    The Czech National Bank (CNB) maintained its benchmark two-week repo rate at 0.05 percent and reiterated its commitment to intervene in foreign exchange market to keep the koruna currency below 27 to the euro, a decision that was largely expected.
    The central bank for the Czech Republic,  which has been using the exchange rate as an additional tool to ease monetary conditions since November 2013, has seen the koruna firm since mid-January with financial markets seen testing the bank’s resolve to maintain its exchange rate cap.
    Last week the koruna hit 27.16 to the euro, the strongest level since November 2013, but since then it has eased slightly to trade around 27.4, still slightly firmer than 27.70 at the start of the year.
    The central bank has on several occasions extended the time frame for maintaining its cap on the koruna’s exchange rate, with the cap currently in place until at least the second half of 2016.
    In its February inflation report, the CNB said it expects inflation to be zero or slightly negative this year before rising to its 2.0 percent target in 2016.
    Consumer price inflation was steady at 0.1 percent in February for the third month in a row.

    The Czech National Bank issued the following statement: