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Government Looks to Cap Energy Prices While Incurring No Extra Debt

CZECHIA
  • A number of comments from CNB members crossed this morning, with governor Michl reiterating that the bank’s goal is to gradually curb Czech CPI back to target. Elsewhere, Frait spoke in an E15 interview stating that it’s “hard to find a reason” for another Czech rate hike now.
  • In a public address yesterday, PM Fiala talked through the government’s plans to enact windfall taxes and garner extraordinary budget income from other sources in order to subsidize energy bills without boosting debt across the country.
  • The plans look to cap costs for electricity and natural gas for households, small business and the public sector, which could cost as much as CZK 130bln.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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