Czech central bank deputy governor considers rate cut, possibly by up to 50 basis points, at next meeting
Czech National Bank Deputy Governor Eva Zamrazilova said the bank could cut interest rates by 25 or 50 basis points at its May 2 meeting.
- the rise in prices of services constituted a risk of inflation
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“This is also why I am cautious about cutting interest rates,” she said. “I have in mind a reduction of 0.25 or 0.5 percentage points. I will see what the (new) situation report shows, but (the reduction) will certainly not be sharper”
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The Czech National Bank begins its easing cycle in December 2023
- has so far reduced the policy rate by 125 basis points to 5.75%
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including reductions of 50 basis points at each of its February and March meetings
The US dollar also showed strength against the CZK:
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The Czech Republic, also known as Czechia, is a member of the European Union (EU). Although it is a member of the EU, it has not adopted the euro as its official currency, meaning it does not participate in the Eurosystem or the monetary policy decisions of the ECB. Instead, the Czech National Bank manages monetary policy for the koruna (krona).
The BNC is part of the European System of Central Banks (ESCB). The ESCB includes the European Central Bank (ECB) and the national central banks of all EU member states.
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