Czech central bank keeps rates on hold as inflation steadies

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.

Source

Recent posts

See All
  • Hans Weber
  • May 30, 2024

Norwegian Embassy in Prague

  • Hans Weber
  • May 30, 2024

Embassy of the Netherlands in Czechia

  • Hans Weber
  • May 30, 2024

Embajada de México en la República Checa

Prague Forum Membership

Join us

Be part of building bridges and channels to engage all the international key voices and decision makers living in the Czech Republic.

Become a member

Prague Forum Membership

Join us

    Close