​Central Bank's Mora Sees Rate Of Inflation ​​Approaching Peak

Czechia's inflation rate is approaching its maximum level, central bank Vice Governor Marek Mora tells Seznam Zprawy in an online interview.

• "It is possible that the figure for October [surprisingly large deceleration to +15.1% Y/Y - MNI] was due to the way the statistical office accounts for the so called regulated prices, especially energy prices (...). Without this one-off effect, inflation would be somewhere above 18%, it would have even accelerated a little. It is possible that we are somewhere near the peak."
• "Inflation needs to be returned to +2.0% as soon as possible. I am willing to risk the fact that we will cause a bigger recession in the Czech economy but we will bring the inflation closer to that goal. But the majority of the bank board simply sees it differently."
• The official notes that returning to the +2.0% Y/Y inflation target is a "long shot" and may take more time than previously projected. "Among other things, the forecast that originally anticipated this included another increase in interest rates, which did not occur."
• Mora does not expect any further interest rate hikes during the remainder of his term, having two monetary policy meetings left, on December 21 and in early February.