CNB Consider it Necessary to Persist with Tight Monetary Policy

Highlights from the minutes:

• The Bank Board considered it necessary to persist with tight monetary policy and approach potential further rate cuts with caution.
• The Board expected inflation to fall significantly in 2024... However, the Board still saw inflationary risks in the outlook.
• According to Aleš Michl, interest rates were safely high above their steady-state level.
• Jan Frait said interest rates would probably be reduced more slowly than implied by their paths in recent forecasts.
• Tomáš Holub said that, on the contrary, there would also be room at the December meeting to lower interest rates by more than the usual 25 basis points, which was preferred primarily for reasons of communication.

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