At its 21 December monetary policy meeting, the Czech National Bank left the two-week repurchase rate on hold at a record low of 0.75%, in a decision widely expected by the market. The Central Bank has not changed the main monetary policy rate since May 2010. At the current level, the two-week repurchase rate remains 25 basis points below the European Central Bank's main policy rate, which was recently lowered by 25 basis points to 1.00% on 8 December 2011. In the Bank's statement, monetary authorities argued that inflationary pressures will remain subdued, despite the government's decision to increase VAT from 10.0% to 14.5% in January 2012. Moreover, the Bank stated that economic growth will continue to soften, in the wake of the debt crisis in the Eurozone, which is the country's main exports destination. The next monetary policy meeting is scheduled for 2 February.
Czech Republic Monetary Policy
Central Bank maintains rates on hold for the 17th month in a row
December 21, 2011
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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%.