26th October 2017

Reuters: Czech central bank may consider 50 basis-point rate increase

The Czech central bank may consider a 50 basis-point interest rate hike when it meets on Nov 2 as the fast-growing economy is able to absorb a larger increase with rates still near zero, central bank board member Tomas Nidetzky said.

Nidetzky voted with three other of the board's seven members against a 25 basis-point hike in September, keeping the main repo rate at 0.25 percent in the wake of the bank's August vote to lift rates off zero after almost five years.

But he told Reuters the decision was motivated solely by a desire to wait for a new quarterly inflation forecast and for the European Central Bank to announce its next policy steps, which it is expected to do on Oct. 26.

The Czech bank my be bolder in November with new forecasts in hand, and then pause again in December, he said.

Read full interview.

Members of the American Chamber of Commerce in the Czech Republic