In a wide-ranging survey of top economists, the main Czech financial daily Hospodářské noviny reports that the Czech koruna is likely to continue strengthening during 2018, even as the economy slows. Most economists predict that less thant 25 crowns will be enough to purchase one euro by the end of the year. This comes on the heels of a year in which the currency has already strengthened considerably, following the end of the national bank’s currency intervention to keep the value down in order to support exports. The impact on the exchange rate with the dollar could be even more profound, according to ING Bank’s chief economist Jakub Seidler, who expects the weakening American currency to slip below the 20 crown level. Patria Finance’s Jan Bureš expects a further rate hike from the Czech National Bank, its third in a row, to take place in February. “The trajectory to higher rates will be clearly set,” he said.
