At its 22 September 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 market analysts. The Central Bank has not touched the main policy rate since May 2010, when authorities cut interest rates from 1.00% to 0.75%. At the current level, the two-week repurchase rate remains 75 basis points below the European Central Bank's policy rate. The Central Bank claimed that inflation will remain close to its inflation target of 2.0% 1.0% over the near-term horizon, but monetary officials anticipate that headline inflation will temporarily remain above 3%, as the VAT rate will be hiked in January 2012. Moreover, monetary authorities anticipate economic activity to slow this year as substantial downside risks remain, amid a shaky financial sector and uncertain public finances in developed economies. The next monetary policy meeting is scheduled for 3 November.
Czech Republic Monetary Policy
Central Bank stays put for a 15th consecutive month
September 22, 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%.