Bank Board's Holub Says CNB Will Start Debating How Long To Keep Rates Steady

CNB's Tomas Holub told public radio that the upcoming debates in the Bank Board will be about how long the policy rate should be kept at 7.00%.

• "It's evident now that the debate will be primarily about hos long to hold interest rates where they are, that means at 7%, because as inflation eases, the 7% level will become more and more restrictive relative to the observed and expected price development."
• The official said that inflation may ease to close to the +2% Y/Y target within a few months, but the seasonal repricing of goods and services in January remains a key source of uncertainty.
• Holub noted that "if next year we indeed get close to our +2% Y/Y target, then the 7% nominal rate will be undoubtedly too restrictive and we will need to start the gradual process of its reduction. If we waited for too long, we would be slowing the economy for longer than necessary."