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


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

Join now for FREE unlimited access to

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.

Join now for FREE unlimited access to

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.

Join now for FREE unlimited access to

Reporting by Robert Muller; Editing by Josie Kao

Our standards: The Thomson Reuters Trust Principles.


Comments are closed.