Frait Warns Against Declaring Victory Over Inflation, Michls Says CNB Will Remain Hawkish

CNB Deputy Governor Jan Frait told Obserwator Finansowy (a journal published by the National Bank of Poland) that he would be "cautious in declaring victory over inflation and at the same time a bright economic outlook" due to the considerable lag between monetary policy decisions and the materialisation of their effects.

• Frait noted that ECB interest rates are the dominant external force affecting Czechia's monetary conditions but US interest rates are also "very important". He pointed to the close alignment between German and Czech economies, arguing that both will eventually recover.
• Meanwhile, Governor Ales Michl told parliament that the central bank will maintain a hawkish stance whether it starts its monetary easing cycle this year or not. Michl noted that any rate cuts will be delivered "cautiously and slowly" and the Bank Board will "do everything to protect our republic against high inflation".