Dopady změny měnově-politické sazby na peněžní a devizové trhy
Impacts of Monetary-policy Interest Rates on Money and Foreign Exchange Markets

Summary/Abstract: This article shows a strong relation between the monetary-policy interest rates and money and foreign exchange markets rates. These rates are quite highly correlated, at least in the short term. Not only the monetary-policy rates change but also the expectations of changes influence money and foreign exchange rates where the changes may be expected and included in the rates, especially when the monetary policy is credible and transparent. However, there are also some other factors influencing the rates like liquidity, volatility or the development on foreign markets. These can weaken the final impact, especially on the foreign exchange markets.

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