The Czech central bank needs to keep monetary policy restrictive for a longer period of time to address persistent inflation risks in the economy, according to Deputy Governor Eva Zamrazilova.
Policymakers in Prague held the benchmark rate at 3.5% at the last two meetings, after slashing it by half during an easing cycle that started in late 2023. While the bank has left all options open for the coming meetings, board members are concerned about rapid growth in housing prices and persistent pressures in services.