At its 3 May monetary policy meeting, the Czech National Bank left the two-week repurchase rate unchanged at a record low of 0.75%, in a decision widely expected by private sector analysts. The Bank's decision means that monetary officials have not altered 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. As in previous statements, the Central Bank argued that inflation will rise temporarily as a result of the January VAT increase, but will fall back below the Bank's 2.0% +/- 1.0% inflation target in 2013. Moreover, monetary authorities acknowledged that subdued domestic demand and moderate wage growth "are currently curbing inflation". In addition, monetary officials pointed out that the economy will stagnate this year as a result of the marked slowdown in external demand and fiscal consolidation. The next monetary policy meeting is scheduled for 28 June.
Czech Republic Monetary Policy
Central Bank remains on hold
May 3, 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.