Dep Gov Zamrazilova Says Pace Of Easing Will Depend On Koruna

CNB Deputy Governor Eva Zamrazilova told Seznam Zpravy that "after two years of extreme price growth, we are returning to normal, to our target band between one and three percent," adding that she does not see a significant risk of an overshoot this year.

• The official said that in her view the pace of disinflation could not have been faster, even if the Bank Board kept raising interest rates. She argued that the Board "could no longer suppress household consumption," which was the weakest in Europe.
• According to Zamrazilova, the inflation target (+2% Y/Y) could be reached this spring, possibly in March or April, but she is "very satisfied" with the +2.3% outturn for January.
• Zamrazilova expressed preference for a more gradual reduction in rates. She added that the easing cycle could be slower if the koruna exchange rate is weaker than expected by the central bank.