The Czech National Bank’s Vice Governor, Monika Kubelkova, has said that the country’s interest rates should stay higher for longer. In an interview with Reuters, Kubelkova said that the bank is keeping a close eye on inflation and that the current interest rate of 0.25% is appropriate to keep inflation in check. She also noted that the bank is keeping an eye on the country’s economic recovery, which has been impacted by the ongoing COVID-19 pandemic.

Kubelkova also said that the bank is prepared to adjust interest rates if necessary, but that the current rate is adequate to support the country’s economic recovery. She added that the bank will also keep an eye on external factors, such as the monetary policy of the European Central Bank and global economic developments, when making decisions about interest rates.

The Czech National Bank has held its benchmark interest rate at a record low of 0.25% since May 2020 to support the country’s economy during the pandemic.

Article by Prague Forum