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CNB's Zamrazilova Says Wage Hikes Are Biggest Risk To Inflation

CZECHIA
  • CNB Deputy Governor Eva Zamrazilova told Lidove Noviny that a wage-price spiral would be the main upside risk to inflation expectations, but preliminary evidence suggests that "if companies raise wages it would be between 5% and 10%, which would be acceptable." The official warned that if wage growth exceeds these levels, it could require a further increase in interest rates.
  • Czechia's sentiment gauges improved this month, with the composite consumer & business confidence index printing at -0.8 versus -3.3 recorded in December.
  • President Milos Zeman will speak with his Polish counterpart today, while Prime Minister Petr Fiala travels to Germany for a meeting with Chancellor Scholz.
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