At a press conference following its board decision, the Czech National Bank signaled that its next interest rate decision will be between holding rates unchanged and raising them. The Bank Board remains prepared to tighten monetary policy if inflation risks materialize, following its rate increase in June, and continues to prioritize reducing domestic core inflation. The central bank identified rising fuel prices as an upside risk to headline inflation but emphasized that they fall outside core inflation. It also characterized an increase in the general government deficit as inflationary and said long-term deficit reduction would support achievement of the inflation target. Although U.S. Federal Reserve policy is significantly influencing the Czech yield curve, the board’s discussion focused primarily on domestic inflationary pressures and the importance of maintaining a strong koruna.
2026-09-17Czech National Bank
Czech National Bank signals choice between holding and raising rates at next meeting
The Czech National Bank signaled that its next rate decision will be between a hold and an increase, with further tightening possible if inflation risks materialize. It identified fuel prices and a wider government deficit as inflationary pressures but remains focused on reducing domestic core inflation.