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MNI CNB WATCH: Rates Cut, But Outlook Shows Inflation Pick-Up

Inflation set to strengthen over first months of 2025, Czech National Bank warns

MNI (LONDON) - The Czech National Bank lowered key interest rates by 25 basis points to leave the two-week repo rate at 4.00% on Thursday, with inflation expected to rise into 2025 before gradually falling back towards 2% over the medium-term. (See MNI EM CNBWATCH: 25bp Cut To 4.00% Seen, Fresh Projections Due)

Average annual inflation will be 2.5% in 2024 according to the Autumn forecast, compared with the 2.3% seen in the Spring exercise. After peaking at 3.3% in December 2024, the forecast for next year was increased from 2.0% to 2.6%. with 2026 inflation at 2.2%.

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MNI (LONDON) - The Czech National Bank lowered key interest rates by 25 basis points to leave the two-week repo rate at 4.00% on Thursday, with inflation expected to rise into 2025 before gradually falling back towards 2% over the medium-term. (See MNI EM CNBWATCH: 25bp Cut To 4.00% Seen, Fresh Projections Due)

Average annual inflation will be 2.5% in 2024 according to the Autumn forecast, compared with the 2.3% seen in the Spring exercise. After peaking at 3.3% in December 2024, the forecast for next year was increased from 2.0% to 2.6%. with 2026 inflation at 2.2%.

Keep reading...Show less