Czech central bank deputy governor unlikely to vote for rate cut – newspaper

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Czech Crown coins are seen in front of a displayed logo of the Czech Central Bank (CNB) in this illustration taken April 1, 2017. REUTERS/David W Cerny/Illustration/File Photo

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PRAGUE, Sept 22 (Reuters) – Czech National Bank Deputy Governor Eva Zamrazilova is unlikely to vote for a rate cut this year as she expects inflation to be unlikely to slow enough, Zamrazilova told local media on Wednesday.

The central bank kept its main interest rate (CZCBIR=ECI) unchanged at 7.00% in August, having increased by a total of 675 basis points since June 2021. This was the first meeting of the reshuffled board under new governor Ales Michl, who had opposed tighter politics as a board member.

Zamrazilova, one of three new faces among the seven-member board, voted for stable rates on Aug. 4, and she told Reuters last week she was likely to maintain her stance at the board meeting. September 29.

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Asked by the Denik N daily how she would vote next week, Zamrazilova said no inflationary news had emerged since the last political meeting.

She also reiterated that to consider a rate cut, inflation heading towards the central bank’s 2% target had to be clear and sustainable.

“Until there is certainty that inflation is heading reliably not just towards single-digit levels, but towards 2%, until then we cannot consider policy easing. monetary,” she said in the interview published Thursday.

When asked if such a development could be expected this year, Zamrazilova said the chances were “negligible”.

Although inflation slowed in August for the first time in more than a year, it was still far from the central bank’s target at 17.2%, aggravated by soaring energy following Russia’s invasion of Ukraine.

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Reporting by Robert Muller; Editing by Josie Kao

Our standards: The Thomson Reuters Trust Principles.

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