Frait Says Rate Hike Costs Would Likely Outweigh Benefits

"Global cost-push inflation pressures appear to be past their peak," CNB policymaker Jan Frait and Bank Board advisor Jakub Mateju wrote in an op-ed for Hospodarske Noviny.

• "Inflation remains high in the Czech Republic. The key question in this situation is whether the CNB would be able to achieve an effective dampening of inflationary pressures by a possible further slight increase in interest rates."
• The officials argued that another rate hike is unlikely to delay consumption and its potential benefits would not justify the costs. However, they refused to rule out renewed monetary tightening if inflation proves persistent.
• Jan Frait will become the central bank's Deputy Governor amid a rejig of the Bank Board to be completed in mid-February.