Vliv úrokového diferenciálu na měnový kurz v Keské republice, Polské republice a Maďarsku
Impact of Interest Rate Differential in the Czech Republic, the Republic of Poland and Hungary

Summary/Abstract: The paper analyzes the influence of interest rate differential on the exchange rate change in the Czech Republic, the Republic of Poland and Hungary. According to the theory of uncovered interest rate parity, the difference between the domestic and foreign interest rates should be approximately equal to the change in the exchange rate. A positive interest rate differential would exert pressure on domestic currency appreciation, while a negative interest rate differential should weaken the domestic currency. In presented text the influence of interest rate differential on the relative exchange rate of three Central European countries is measured in the timescale from 2004 to 2015. An intermediate value test was performed on extended timescale. The validity of the uncovered interest parity theory has not been proven.

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