This year, the Czech National Bank will continue the easing of monetary policy, which it started in December with the first reduction in interest rates since May 2020, CNB Deputy Governor Eva Zamrazilová said on Sunday. The rate of reduction will depend on how quickly inflation, which interest rates are meant to tame, will subside. … Read more
Michl pointed out that despite the current reduction, interest rates in the coming quarters will be higher than the CNB’s macroeconomic forecast would have predicted. He emphasized that the Bank Board is ready to respond adequately to the eventual fulfillment of the risks of the forecast. They assess these risks as pro-inflationary, in particular the … Read more
Next month, the Czech National Bank will end interest on deposits that banks must deposit with it as mandatory minimum reserves. This is definitely not a small amount, on average, banks held over 100 billion crowns with the CNB this year, and it will hurt the banks a lot. With this decision, the Central Bank … Read more
July year-on-year inflation of 8.8 percent was a tenth of a percentage point lower than the Czech National Bank (ČNB) expected in its latest summer forecast. For example, food prices rose more slowly than the central bank expected. On the contrary, regulated prices rose faster. They grew by 22.5 percent, while the CNB expected a … Read more
According to the CNB, economic recovery should come next year, when GDP growth will be 2.3 percent. Even in this case, however, the central bank revised its forecast downwards compared to May, when it expected three percent growth. In 2025, according to her, GDP will increase by 2.7 percent. According to the CNB, average inflation … Read more
Consumer price growth peaked last September, when the year-on-year inflation rate was 18 percent. From February of this year, in line with the expectations of the central bank, a gradual downward trend began, CNB Governor Aleš Michl said at a press conference. At the same time, he added that if inflation, which reached 15 percent … Read more
“The Czech currency is supported by a positive mood on the capital markets, a high interest differential and a change in the rhetoric of central bankers related, among other things, to the cooling of inflationary pressures. If this sentiment and macroeconomic development continues, the koruna may also move to stronger levels in the coming months, … Read more
The CNB stated that in its decision it took into account the current position of the Czech economy in the financial cycle, the extent of credit risks in the balance sheet of the banking sector and the development of its vulnerability. “At the same time, it took into account persistent uncertainties regarding further geopolitical and … Read more
Show more You can also listen to the article in audio version. What you will read in the analysis Czech companies take out crown loans from banks instead huge amount of loans in eurosfor which – unlike crown bonds – they do not pay such high interest. He transfers a large part of these loans … Read more
In a period of double-digit inflation, monetary policy unsurprisingly becomes the subject of public debate. Although the Czech National Bank (ČNB), or rather the Banking Council, in the first half of last year, from the point of view of the history of monetary policy, tightened its monetary policy extremely sharply, it still finds itself in … Read more