Czech central bank's FX cap exit likely in mid-2017

PRAGUE: The Czech central bank is likely to ditch its cap on the crown in mid-2017, board member Vojtech Benda said on Tuesday, reiterating the bank's outlook in a presentation published on its website.

Benda said the exit depended on economic conditions, and predicted the return to conventional currency policy would not result in the crown firming sharply to "slightly over-valued" levels seen before interventions started in 2013. He added the crown market was overbought.

He also said the use of negative interest rates was not a preferred option but the central bank might considered it for supporting the exchange rate commitment.