29th December 2014

Czech economy will grow says the CNB

After its meeting the Board of the Czech National Bank presented its outlook for the Czech economy. The Board agreed on its estimate that the Czech economy should grow in the months to come. This estimate is based on growth of all expenditure components of the GDP with the exception of net export. Also the decreasing unemployment rate in relation to the previous year, renewed growth in wages and growth of new loans contribute to this expected growth. As for the currency exchange rate policy the Czech National Bank repeated its commitment to keep the Czech currency under the rate of 27 CZK in relation to EUR and end it no sooner than in the year 2016. Also the interest rates would be kept at their historical minimum values as the fear of deflation and excessive savings is still not gone especially when looking at the falling prices of oil. The Board of CNB also said that it saw its exchange rate intervention as beneficial to the Czech economy as it evidently help to stabilize it and to increase the confidence in it. We can see this in the growth of Confidence Index presented by the Czech Statistical Office that grew by 1.6 points in relation to November to current value of 11.6 point and its size is more than double compared to the beginning of the year 2014.

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Members of the American Chamber of Commerce in the Czech Republic