Dep Gov Zamrazilova Says Debate Is Now About When To Cut Rates

Wires report that CNB Deputy Governor Eva Zamraziilova told lawmakers that monetary policy settings are tight enough and the focus of the debate has now shifted to the timing of first rate cuts.

• The official told a parliamentary committee that the central bank would likely revise its outlook for household consumption lower and expected the koruna to weaken. At the same time, Zamrazilova said that the CNB cannot cut interest rates before policymakers are certain that inflation is headed towards the +2% Y/Y target.
• The tone of Zamrazilova's comments is slightly at odds with the CNB's decision to formally keep the hawkish bias in its forward guidance after the latest monetary policy meeting, when they said that the "Bank Board will decide at its next meeting whether rates will remain unchanged or increase."
• Her remarks also contrast with the message convened by Governor Ales Michl during his press conference last month, as he said that "there is no point whatsoever in speculating when rates will be lowered and it is not the subject of our meetings at all, nor will we be discussing it for the time being."