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CNB Cuts Interest Rates, Czechia Mourns After Mass Shooting

CZECHIA
  • The Czech National Bank (CNB) trimmed interest rates by 25bp, the first reduction since May 2020. Most analysts were looking for a cut, but many argued that it was a very close call. The Bank Board's decision was unanimous, but Governor Ales Michl said that inflationary risks remain and the rate path will likely be higher than in the baseline scenario of the staff forecast, while the process of cutting rates may be paused or terminated at any point.
  • Czechia will observe a national day of mourning on December 23 after a deadly attack of a shooter at Prague's Charles University, the worst such incident in the country's recent history.
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