CNB ready to raise interest rates

The Czech National Bank is ready to raise the interest rate in the event of price-hikes or increased inflation, member of the CNB Bank Board Vladimír Tomšík said on Monday. Mr Tomšík said that the Czech National Bank had already demonstrated its determination to fight inflation when last year it raised the key two-week repo rate four times to a five-year’s maximum of 3.5 percent. This year, the Bank Board will be dealing with interest rates on February 7, and it is generally expected to raise the interest rate by a quarter of a percentage point. By then the Czech National Bank will also have the new quarterly inflation prediction.

Author: Jan Richter