May 20, 2024 07:43 GMT
CNB Sees Inflation Within Tolerance Band, FinMin Says Ruling Coalition Debates Bank Tax
CZECHIA
- Zdenek Pikhart, Director of the CNB's Department of Monetary Policy and Fiscal Analysis, told Bankovnictví magazine that while his team prepares forecasts based on the most likely scenario for the economy, the reality is often much more complex, and hence monetary policy must be fine-tuned to take into account various risks. He added that "the strong wave of inflation from previous years is really behind us," adding that inflation should remain "very close to the target and within the tolerance band this year and next." The official reiterated that the neutral nominal interest rate in the Czech economy is estimated at 3% but "there is general uncertainty about the exact level of the equilibrium interest rate."
- Finance Minister Zbynek Stanjura said that the country's ruling parties are debating a special bank tax but he is not currently planning to implement such a measure. He said that he was unable to predict the outcome of these discussions but his party remains opposed to the idea.
- Czechia's industrial PPI accelerated to +1.4% Y/Y in April from 0% prior, printing just shy of the +1.5% consensus forecast. Agricultural producer prices were down 13.4%, construction work prices rose 2.0% and service producer prices were up 3.4%.
- A Kantar poll for CTK showed that ANO remains the most popular party with a 32.5% support rate, while Prime Minister Petr Fiala's ODS can boast 15.5%. The Spolu coalition (ODS, KDU-CSL and TOP 09) could garner 22.5% of the vote.
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