Updated 17:58
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Inflation is rising, the koruna is strengthening, mortgages are becoming more expensive. Economist Lukáš Kovanda spoke with Marek Mora, Vice Governor of the Czech National Bank, about these and other topics on Thursday’s Our Czechia program.
The level of December inflation in December is 6.6% and prices in the Czech Republic continue to rise significantly. We are thus experiencing the most significant inflation since the 1990s. According to some estimates, inflation in January may rise to ten percent.
“It seems that the numbers for January will be even more significant than the numbers for November and December, which are in themselves record-breaking. It is possible that they will reach up to double digits, ie ten percent,” says Marek Mora, vice-governor. Czech National Bank. But he did not rule out even 11%.
According to him, there is uncertainty about the one-off revaluation, which takes place every year at the beginning of January and concerns energy prices and market prices in trade. “Prices are rising everywhere, so it is possible that the revaluation will be more pronounced,” he explains.
“The first quarter of this year will be quite dramatic. We expect year-on-year inflation to be around eight, nine to ten percent. our goal, somewhere close to 2% inflation, “predicts the CNB vice-governor.
The Czech currency is the strongest against the euro in the last ten years. Last week it strengthened to 24.44 CZK / EUR, this week even below 24.4. According to experts, this is due to rising inflation and the subsequent rise in interest rates by the Czech National Bank (CNB).
According to Mora, the CNB plans to further increase the basic interest rate. “It should exceed four percent by the end of March. My estimate is up to 4.75 percent,” Mora estimates.
And the Czech koruna should also strengthen further. “Border 24 should not be broken until next year, but anything can happen and the koruna can react in different ways,” he adds.
TN.cz
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