CNB Board ‘Room To Raise Interest Rates Further’

The Czech central bank has room to further raise interest rates due to inflationary pressures and prolonged crown weakness, bank board member Tomas Nidetzky was quoted as saying on Wednesday.


Nidetzky did not say in an interview with Bloomberg news agency how he would vote at the bank’s next policy meeting on Nov. 1. The board has lifted rates at its last three meetings.


“The developments in the real economy are creating room to continue with monetary-policy normalization,” he said. “I am personally convinced the pressure that’s preventing (crown) gains will be more persistent, which creates room to tighten monetary conditions through the interest-rate channel.”


Via Reuters