Market may test Czech FX cap but no big money bets against central bank

April 9, 2015 7:00 AM

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PRAGUE, April 9 (Reuters) - The Czech crown may test its cap against the euro, although there is little appetite for a serious challenge of policymakers' resolve any time soon given the small market and the central bank's ample scope to intervene.

The bank introduced the cap in late 2013 to fight deflation risks, pledging to keep the crown weaker than 27 to the euro. It has said it will maintain the cap until at least the second half of 2016.

Also read: RBS Fails Toughest-Ever BOE Stress Test, Boosts Capital Plan

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