ČNB leaning towards gradually stricter monetary policy

3. 1. 2018

At the December 21, 2017 meeting, the majority of members of the Czech National Bank (ČNB)’s bank council were in favour of a gradually stricter monetary policy, especially in a situation in which the risk of default in the process of normalising interest rates was not significant.

(CIANEWS, Jan 3)  At the December 21, 2017 meeting, the majority of members of the Czech National Bank (ČNB)’s bank council were in favour of a gradually stricter monetary policy, especially in a situation in which the risk of default in the process of normalising interest rates was not significant. This stems from the minutes of the bank council’s meeting published on January 3, 2018. Overall, it is still valid that the timing of the next steps in the increasing of interest rates would depend on the development of all key macroeconomic factors including the koruna exchange rate. Counter-inflation factors, even though slight ones, are a slower-than-forecast growth of wages and slightly stronger-than-forecast exchange rate. External conditions work slightly in favour of inflation.