Referred to as a key document, the government’s National Investment Plan has been years in the making. On Monday, the long awaited concept was finally unveiled. It counts on some CZK 8 trillion being spent by 2050 on investments in all branches of state infrastructure. The prime minister says it could help in EU funding negotiations with Brussels. However, the opposition has mocked it as a simple wish list with no clear implementation strategy.
The Bank Board of the Czech National Bank raised its basic interest rate to
2 percent, an increase of 0.25 percent, the Czech News Agency reports. It
is the first rise since November 2018 and interest rates are now at their
highest in the past 10 years.
Analysts told the Czech News Agency the increase is mainly due to developments in the country’s economy, with inflation rates rising above predictions in the first quarter of 2019 and the exchange rate for the Czech crown weaker than the bank predicted in February.
The bank has also decided to go ahead with 0.25 percent raises in the Lombard rate, which deals with short-term liquidity loans to commercial banks and the discount rate.
The Czech economy has been outperforming its central European neighbours and is set to reach something of a psychological milestone next year, when GDP per capita is on track to reach 85 percent of the Eurozone average. In more tangible terms, though, the average Czech is enjoying greater purchasing power, and confident they can always find work.
The Czech National Bank on Thursday raised the basic interest rate by a
quarter of a percentage point to 1.75 percent. It is already the fifth hike
in interest rates this year, as the bank response to rapid pace of wage
growth and the resulting impact on inflation.
According to Central Bank governor Jiří Rusnok, there will be no more hikes before the end of the year. The Czech National Bank has also downgraded its growth forecast for this year to 3.1 percent and for next year to 3.3 percent.
The central bank is likely to increase the basic interest rate to 1.75
percent at a meeting of the bank‘s board on Thursday, according to
The National Bank last raised the basic interest rate by a quarter of a percentage point to 1.5 percent in late September.
The board has raised interest rates by 25 basis points at the three rate-setting sessions since June, citing economic growth, inflation and wage development.
The average mortgage interest rates in the Czech Republic are the sixth
highest in EU, suggests a study carried out by the website ChytrýHonza.cz,
based on data from Eurostat, the European Central Bank and Crédit Foncier.
According to the data, interest rates on mortgages in Europe range from 1.09% in Denmark to 4.4% in Poland. In the Czech Republic, the average rate is 2.2%. However, the level of indebtedness of the Czechs is not as great as, for example, that of the French.
The Czech National Bank (ČNB) board has increased the two-week repo rate
by 25 basis points to 1.5 percent. At the same time, it increased the
Lombard rate to 2.5 percent and the discount rate to 0.5 percent.
The board has raised interest rates by 25 basis points at the three rate-setting sessions since June. The new levels come into effect on 27 September 2018.
Earlier, central bank governor Jiří Rusnok, citing economic growth, inflation and wage development, said he would not rule out more hikes before the end of the year.