At its 2 February meeting, the Czech National Bank maintained the two-week repurchase rate unaltered at a record low of 0.75%, in a move widely expected by market analysts. The Central Bank has not changed the main monetary policy rate since May 2010. At its current level, the two-week repurchase rate remains 25 basis points below the European Central Bank's main policy rate. In its statement, monetary authorities argued that owing to the government's decision to increase the VAT in January, inflation will rise to just above 3% in 2012, before falling back below the Bank's 2.0% 1.0% inflation target at the start of 2013. Moreover, the Bank foresees that the economy will stagnate this year ?as a result of a marked slowdown in external demand and continuing domestic fiscal consolidation?. On the upside, the Bank predicts GDP growth picking up to 1.9% in 2013, amid gradual recovery in global demand. The next monetary policy meeting is scheduled for 29 March.
Czech Republic Monetary Policy
Central Bank maintains rates on hold for 18th consecutive month
February 2, 2012
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Czech Republic Economic News
October 24, 2016
The economic sentiment indicator published by the Czech Statistics Office (CSO) rose from September’s 97.1 points to 97.5 points in October, marking a nine-month high.
October 10, 2016
In September, consumer prices fell 0.2% from the previous month, matching August’s reading.
October 7, 2016
Industrial production grew 13.1% year-on-year in August, which sharply contrasted the 14.1% fall registered in July and was the best result since May 2011.
October 3, 2016
The manufacturing Purchasing Managers’ Index (PMI) produced by IHS Markit rose from August’s 50.1 to a four-month high of 52.0 in September.
September 29, 2016
At its meeting on 29 September, the Czech National Bank (CNB) decided to leave the two-week repo rate unchanged at its so-called “technical zero” of 0.05%.