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HomeEconomyCzech central bank deputy unlikely to vote for rate cut: newspaper

Czech central bank deputy unlikely to vote for rate cut: newspaper

PRAGUE (Reuters) – Czech National Bank Deputy Governor Eva Zamrazilova is unlikely to vote for a rate cut this year as she sees little chance of inflation slowing sufficiently, local media quoted Zamrazilova on Wednesday as saying.

The central bank’s main interest rate remained at 7.17% in August, following a total of rate hikes since June Basis point 2021. It was the first meeting of the restructured board under new director Ales Michl, who as a board member opposed the tightening.

Zamrazilova, one of three fresh faces on the seven board members to vote for stable rates on Aug. 4, told Reuters last week that she may to maintain her position at the meeting.

When Denik N Daily asked her how she would vote next week, Zamrazilova said there had been no information on inflation since the last policy meeting.

She also reiterated that in order for a rate cut to be considered, inflation that will approach the central bank’s 2% target must be clear and durable.

“We cannot consider easing monetary policy until we are certain that inflation is not only reliably heading towards single-digit levels, but also towards 2 percent,” she said in an interview published on Thursday . d Chances are “very small”.

Although inflation slowed in August for the first time in more than a year, it remained well below the central bank’s published target

.2% as energy costs soared following Russia’s invasion of Ukraine got worse.

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