PRAGUE (Reuters) - The Czech central bank is likely to keep interest rates unchanged on Wednesday and will instead deliver another hike when it has new economic forecasts ready in November, a majority of analysts said in a Reuters poll.
The Czechs have stepped ahead of Europe peers by shifting away from an ultra-loose policy. In April, the central bank abandoned a currency cap in place since 2013 and in August it hiked interest rates from near zero, the first rise in almost a decade.
With a fast-growing economy, wages surging and inflation sticking above target, central bankers have signaled they could raise borrowing costs further this year. Some have not ruled out voting for an increase at this month’s sitting.
While five of 16 analysts in the poll forecast a rate hike this week, 10 saw a 25 basis point rise at the next meeting in November. One analyst said the fourth quarter was likely, meaning either November or December meetings.
“We expect a hawkish outcome form the upcoming September monetary policy meeting, which will prepare markets for a November hike,” Komercni Banka chief economist Jan Vejmelek said.
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12th October 2020