Gov Michl Flags Need For Caution About Rate Cuts

News wires run headlines from CNB Governor Ales Michl's keynote speech at a discussion forum in Pardubice. The Governor reaffirms the need to be "very cautious" about further rate cuts, even as monetary easing may continue at the Bank Board's meeting next week. He adds that cuts may be paused or halted if inflation and/or core inflation deviates from the CNB's forecast.

• The tone of his comments is consistent with earlier communications. After its March meeting, the Board said that it "considers it necessary to persist with tight monetary policy and continue to approach further rate cuts with caution." It also said that "the interest rate reduction process can be paused or terminated at any time at levels that are still restrictive if inflation – especially its core component – does not develop in line with the forecast."
• Reminder that Eva Zamrazilova and Jan Prochazka will speak on discussion panels later in the day.