Two months after the end of the third quarter, we finally have the opportunity to get acquainted with the detailed – although not all – results of the Czech economy. In the end, GDP growth was slightly better than the flash estimate suggested, which is quite a miracle given the situation in the automotive industry. … Read more
“The CNB unexpectedly raised interest rates sharply and this is the most significant one-off increase in interest rates since June 1997, which opens up room for banks to significantly increase interest rates on client deposits,” comments Lukáš Kovanda, a member of the government’s National Economic Council and chief economist at Trinity Bank. Trinity Bank raises … Read more
“Starting in January 2022, the CNB will gradually sell part of the income from foreign exchange reserves on the foreign exchange market. The transactions will be carried out in such a way that their effect on the exchange rate is minimal, “said the bank. According to the central bank, the resumption of the sale is … Read more
“Domestic price increases continue on all fronts, which at least makes it easier to identify its causes – everything belongs to them,” said Raiffeisenbank analyst Vít Hradil. “Even in the foreseeable future, there is not much to bet on calming the situation. Adjustments to the price lists of large energy suppliers will only become more … Read more
Current year-on-year inflation in August exceeded four percent, a rate that the Czech Statistical Office last recorded thirteen years ago. The Czech National Bank decided to take action against further growth last week when it announced a doubling of key interest rates to half a second percent. This was the most significant increase in the … Read more
Why did the CNB raise interest rates by 0.75 points? “It is raising rates to prevent inflation expectations from anchoring in the economy at a higher than desired level,” explains David Marek. Inflation in the Czech Republic rose to 4.1 percent in August. Domestic prices are growing the fastest in eight years; at present, inflation … Read more
For the first time, inflation thus significantly exceeded the European Central Bank’s (ECB) target. It intends to keep price growth at two percent per year in order to revive the economy. The central bank estimates that the current rapid rise in prices is only temporary and expects inflation in the euro area to be 2.2 … Read more
What are the main reasons for inflation so far? The current slight decline in inflation is only temporary. Inflationary pressures in the domestic economy will increase, companies have already said that the situation is the same, if not worse than before the pandemic, there is a shortage of labor on the market. The pressure for … Read more
Institution in a joint press release stated that in the unprecedented conditions of the covid pandemic and the related global economic downturn, the Czech Republic will most likely meet only one of the Maastricht convergence criteria this year, namely the criterion on interest rates. – The criteria of public finances and price stability will not … Read more
The CNB will offer a 200-crown silver coin for sale from Wednesday. “The commemorative 200-crown coin, stamped from an alloy containing 925 parts of silver and 75 parts of copper, has a diameter of 31 mm and a weight of 13 grams,” said CNB spokeswoman Markéta Fišerová. The coin features architect Adolf Loos, who would … Read more