At its 4 August meeting, the Czech National Bank left the two-week repurchase rate unaltered at a record low of 0.75%, in a decision widely expected by the market. The Central Bank has not modified the main policy rate since May 2010, when authorities cut interest rates by 25 basis points. At the current level, the two-week repo rate remains 75 basis points below the European Central Bank's policy rate. In its statement, the Central Bank reckoned that headline inflation remains close to its inflation target of 2.0% 1.0% over the near-term horizon and that inflation pressures remain at bay. Moreover, monetary officials anticipate that economic activity will slow this year, on the back of the government's fiscal consolidation plan. The next monetary policy meeting is scheduled for 21 September.
Czech Republic Monetary Policy
Central Bank stays put for the 14th consecutive month
August 4, 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%.