PRAGUE, Dec 21 (Reuters) – The Czech National Bank (CNB) left its benchmark two-week repo rate CZCBIR=ECI unchanged at a more than two-decade high of 7.00% on Wednesday, keeping rates steady as policymakers see signs of a peak in double-digit inflation.

Price growth hit its highest rate in around three decades in the second half of 2022 but has since eased somewhat as government measures to help households and firms deal with soaring electricity bills take effect.

The central bank launched one of Europe’s sharpest rate-hiking cycles last year – lifting the key rate by 675 basis points between June 2021 and June 2022 – but it has been on hold since new Governor Ales Michl took the bank’s helm in July and three new members joined the seven-seat board.

Michl has advocated steady policy, despite a new central bank outlook in November implying more tightening was needed, and says the economy needs an anchor as it slips into a mild recession.

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