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CNB Board Vote 7-0 to Keep Rates Unchanged

CZECHIA

Highlights from the CNB policy statement:

  • The Bank Board regards the current settings of the monetary conditions as appropriate for inflation to return to the inflation target next year in all the scenarios considered.
  • The Bank Board expects the interest rate path to be higher than in the baseline scenario of the current forecast in the coming quarters.
  • The Bank Board assessed the risks of the forecast and the uncertainties of the outlook as being significant and going in both directions.
  • Inflation has fallen in accordance with the summer forecast over the past two months. In September, we expect another significant decline. In October, we expect annual inflation to rise temporarily due to the base effect caused by the introduction of the energy savings tariff last year.
  • In the first half of 2024, we expect inflation to be close to the 2% target.
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