Czech National Bank

Petr Dubinsky

Analysts: CNB To Hold Interest Rates Through 2020


The Czech National Bank (CNB) is likely to hold interest rates unchanged through 2020 as it balances inflationary pressures at home with policy easing and economic weakness abroad, a Reuters poll of analysts showed on Monday.


The central bank has paused its two-year tightening cycle since delivering a rate hike in May, when it raised the key two-week repo rate CZCBIR=ECI by 25 basis points to 2.00%, the highest since 2008.


All respondents in the Reuters poll see the bank holding fire at this year’s three remaining policy meetings.


Eight of the 13 analysts see the main rate also remaining at its current level for the whole of 2020.


Two analysts forecast the bank’s next move would be an interest rate cut coming in the first quarter of 2020, and one analyst saw a cut coming in Q2 next year.


Central bankers who have spoken since their last meeting on Aug. 1 have said they would now like rates kept stable.


Via Reuters