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CNB Board Voted 5-2 to Hold Rates

CZECHIA

Highlights from the CNB policy statement:

  • The Bank Board assessed the risks of the forecast and the uncertainties of the outlook as being significant and tilted to the upside. The threat of inflation expectations becoming unanchored is the main upside risk to inflation.
  • According to the new forecast, inflation will fall significantly at the start of 2024. The average inflation rate will be 2.6% in 2024 and is expected to decrease further to 2.1% in 2025. However, core inflation is expected to be elevated next year, averaging 3%.
  • As regards GDP, the economy will contract by 0.4% this year according to the forecast. GDP will return to growth of around 1.2% next year.

See the full statement here.

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