Czech rates to rise at 3rd consecutive central bank meeting

Czech rates to rise at 3rd consecutive central bank meeting

Published at: 2018-09-24 11:47 | Author: CIJEurope.com
The Czech National Bank is expected to raise the country's basic interest rate for the third straight time on Wednesday. The move is being justified by an attempt to cool off the overheating labor market and to put a lid on the residential market. But the bank is also concerned that the Czech koruna continues to be weaker than it likes, raising the risk of inflation. "Another rate increase before the end of the year cannot be ruled out," writes Lukáš Kovanda, chief economist at Czech Fund in kurzy.cz. "There's a certain risk in this rapid approach to tightening the exchange screws in the form of a growing gap between interest rates in the Czech Republic and in the eurozone. After raising the rates this week, the gap between the basic rates of the CNB and the basic rate of the European Central Bank will rise to 1.5 percent. The last time the gap was this big was in November 2001."

Similar Stories:

Serbian bank lending volume rises 7.7%
Lending volumes continued to grow in the third quarter of 2018 thanks to strong economic g  »
Czech Central bank leaves rate hikes until February
At its regularly schedule meeting yesterday, the Czech National Bank passed up the chance  »
Hungary’s OTP Bank to buy Societe Generale in Serbia
Hungary’s OTP Bank is poised to buy Societe Generale’s Serbian unit. The price of he i  »
Czech bank producing record profits in 2018
The Czech National Bank writes that Czech banks have had a record year, producing profits  »
The future is not out of our hands. Indeed, the main purpose of organised real estate is t   »
Lower prices means lower costs for manufacturers and carriers, and thus reduced product pr   »
The most important thing is client understanding. Quite simply, clients need a much greate   »