Czech interest rates should rise further, IMF says.
Czech interest rates should rise further “in the short term” to tame inflation and avoid more painful hikes later, the International Monetary Fund has said in the conclusions of its 2022 report on the country.
The Czech National Bank (CNB) has maintained interest rate stability for half a year under a revamped board led by Governor Ales Michl, seeking to anchor the economy as high inflation saps consumer and company activity.
The stable policy stance comes after a combined 675 basis points in hikes between June 2021 and June 2022, bringing the key rate to a more than two-decade high of 7.00%.
