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CNB Benda Says That Policy Rate May Rise Near 5%

CZECHIA
  • CNB policymaker Benda mentioned in an interview that the central bank may raise its policy rate near to 5% to continue its fight against inflation.
  • With inflationary pressures expected to remain elevated longer than previously anticipated, CEE policymakers are expected to prolong CBs tightening cycle through H1 2022 until inflation starts to decelerate slowly.
  • Benda added during his interview that inflationary pressures coming from abroad (especially CEE peers like Poland that have been 'avoiding inflation') may also impact the Czech economy.
  • He confirmed that the CNB needs and will continue to fight against inflation.


Link to full interview (in Czech):

https://www.focuson.cz/urokove-sazby-brzy-zvedneme...

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