In a presentation at the International Scientific Conference on Economic Policy, Czech National Bank board member Jakub Seidler argued that monetary policy must remain restrictive despite inflation having stayed close to the 2% target since January 2024. The Czech National Bank’s summer 2026 forecast projects inflation at the target on average in 2026 and above 2% in 2027, with interest rates approximately stable. Economic growth is forecast at 2.2% and 2.7%, respectively. Persistent services inflation, robust wage increases, strong credit growth and public finance deficits continue to generate domestic price pressures. Geopolitical tensions, rising natural gas prices and low European Union gas storage levels add external risks. Seidler said the appropriate response to supply shocks depends on their persistence, the anchoring of inflation expectations, demand conditions and the extent of price and wage spillovers, rather than automatically looking through such shocks.
2026-09-08Czech National Bank
Czech National Bank board member Seidler argues for continued restrictive monetary policy as inflation risks persist
Czech National Bank board member Jakub Seidler said restrictive monetary policy remains necessary despite inflation staying near the 2% target. Persistent services inflation, wage and credit growth, fiscal deficits and geopolitical risks could sustain price pressures, while rates are projected to remain approximately stable.