Czech Central Bank Urges Caution as Inflation Returns to 2% Target
Updated
Updated · Bloomberg · Jul 10
Czech Central Bank Urges Caution as Inflation Returns to 2% Target
3 articles · Updated · Bloomberg · Jul 10
Summary
The Czech central bank said policy caution remains warranted, warning headline inflation is likely to return to or slightly exceed its 2% target later this year.
That outlook follows a recent drop in inflation but reflects officials' concern that domestic price pressures have not fully eased.
Last month the bank raised its key interest rate for the first time in four years, resisting Prime Minister Andrej Babis's calls for lower borrowing costs.
The warning signals policymakers are not ready to pivot quickly toward easier policy even with inflation recently moving closer to target.