In a Reuters interview, Czech National Bank Deputy Governor Eva Zamrazilová said economic conditions provide few reasons to change the key repo rate when the board meets on September 17, but monetary policy must remain restrictive. The bank raised the rate to 3.75% in June, and future decisions will remain data dependent, with the board due to assess new data and an updated economic forecast in November. Zamrazilová identified upside risks from persistent services inflation, real estate prices, a tight labor market, private sector lending and debt financed public spending. Headline inflation was estimated at 1.9% in August as falling food prices offset services inflation, but she expects food prices to turn inflationary within the next few months. First quarter wage growth was revised down to 6.1% from 8.1%, removing a potential reason to consider a rate increase, while second quarter growth of 6.4% remained above the sustainable rate of no more than 5%.
2026-09-09Czech National Bank
Czech National Bank Deputy Governor sees little case for September rate change as inflation risks remain tilted upward
Czech National Bank Deputy Governor Eva Zamrazilová sees little reason to change the 3.75% key repo rate on September 17, although policy must remain restrictive. She expects food prices to turn inflationary and sees further upside risks from services inflation, wages, property prices, credit growth and public borrowing.