Czech central bank raises rates after inflation hits 16%
Expectations could become unanchored from 2% inflation target, board warns
A majority of the Czech National Bank’s monetary policy board voted to significantly tighten its monetary policy on June 22 as inflation outstripped the central bank’s forecast.
The CNB voted by five to two to increase its main interest tool, the two-week repo rate, by 125 basis points to 7%. It voted by the same margin to increase the discount rate to 6% and the Lombard rate to 8%. The two dissenting voters were in favour of holding policy rates at their previous levels, the CNB said.
Year-on
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