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CZECHIA: CNB's Seidler Would Prefer to Hold Rates Steady in March

CZECHIA

Speaking in an interview with Bloomberg, central banker Jakub Seidler said he would prefer to hold borrowing costs steady next week as European plans to boost defense spending compound domestic inflation risks. Highlights below via Bloomberg:

  • “The balance of risks in my view still shows that interest rates should stay where they are, which means maintaining some degree of policy restriction,” Seidler said. He voted with the majority to halt rate cuts in December, and then backed a decision to lower the benchmark by another 25bps to 3.75% last month.  
  • “A cautious stance is legitimate in periods of high uncertainty,” Seidler said.
  • “Several other central banks have taken a similar approach, because the outlook in general is much more clouded than it used to be before the coronavirus pandemic.”
  • Market prices indicate about 50 basis point rate of cuts within the next 12 months, which Seidler considered “relatively fair.”
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Speaking in an interview with Bloomberg, central banker Jakub Seidler said he would prefer to hold borrowing costs steady next week as European plans to boost defense spending compound domestic inflation risks. Highlights below via Bloomberg:

  • “The balance of risks in my view still shows that interest rates should stay where they are, which means maintaining some degree of policy restriction,” Seidler said. He voted with the majority to halt rate cuts in December, and then backed a decision to lower the benchmark by another 25bps to 3.75% last month.  
  • “A cautious stance is legitimate in periods of high uncertainty,” Seidler said.
  • “Several other central banks have taken a similar approach, because the outlook in general is much more clouded than it used to be before the coronavirus pandemic.”
  • Market prices indicate about 50 basis point rate of cuts within the next 12 months, which Seidler considered “relatively fair.”