At its 2 August monetary policy meeting, the Czech National Bank maintained the two-week repurchase rate at a record-low of 0.50%, in a decision broadly expected by the market. The move follows the Bank's decision to cut the main monetary policy rate by 25 basis points in June. At the current level, the two-week repurchase rate is 25 basis points below the European Central Bank's main policy rate. Monetary authorities underlined that, on the monetary policy horizon, inflation will hover slightly above the Bank's inflation target due to tax changes aimed at curbing the fiscal deficit. In addition to tax changes, monetary officials explained that commodity prices and a weaker koruna also remain sources of inflation. Authorities acknowledged that the economy will contract 0.9% this year as a result of a marked slowdown in external demand and that growth in domestic demand will be anaemic on the back of fiscal consolidation. The next monetary policy meeting is scheduled for 27 September.
Czech Republic Monetary Policy
Central Bank pauses easing cycle after June rate cut
August 2, 2012
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Czech Republic Economic News
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%.
September 26, 2016
The economic sentiment indicator published by the Czech Statistics Office (CSO) rose from August’s 96.8 points to 97.1 points in September, marking a seven-month high.