Deputy Governor Zamrazilova Says Inflation Could "Start With Three" Within Year

CNB Deputy Governor Eva Zamrazilova told Seznam Zpravy that she expects inflation to begin decreasing soon and it will likely "start with a three" within a year.

• "When the war effect wears off, we will go back to having inflation very similar to that in the eurozone. Within a year we will be at the limit of our tolerance band [of +1-3% Y/Y]."
• The official said that the traditional economic model suggests that interest rates should continue to rise, but the majority of Bank Board members have assessed that this would have a small impact on inflation and large impact on economic activity.
• The Deputy Governor said she was almost certain that interest rates will remain unchanged this year and will stay elevated for longer, while pushing back against OECD and IMF recommendations to resume rate hikes.