At its 3 November 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 the market. Monetary authorities have not altered the main policy rate since May 2010, when officials cut it from 1.00% to 0.75%. At the current level, the two-week repurchase rate remains 50 basis points below the European Central Bank's main policy rate, which was recently lowered by 25 basis points to 1.25%. The Central Bank stated that inflationary pressures will remain at bay over the near-term policy horizon as pressures from the domestic side of the economy are subdued and global commodity prices are showing signs of moderation. The Bank acknowledged that inflation will rise temporarily to just below 3% in 2012, owing to the VAT rate increase that will become effective in January 2012, but see it falling back below the Bank's target at the start of 2013. In addition, monetary officials argued that economic growth will continue to weaken as a result of the ongoing slowdown in the Eurozone, which is the country's main export destination. The next monetary policy meeting is scheduled for 21 December.
Czech Republic Monetary Policy
Central Bank stays put for 16th consecutive month
November 3, 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%.