Czechs Mull First Rate Hike Since 2022 to Curb Price Pressures (opens original article in a new tab)

The Czech central bank considers its first interest rate hike since 2022 to combat inflation, with analysts divided on whether rates will increase by 0.25 percentage points or remain unchanged. The decision comes amid domestic inflation pressures and concerns about money supply growth, while the governor signals a stronger case for tightening policy.

• Czech central bank may raise interest rates for first time since 2022 to address inflation pressures
• Analysts predict 0.25 percentage point rate increase to 3.75% or no change
• Governor Ales Michl indicates strengthening case for rate hike amid money supply growth and wage increases
• Potential hike could create tension with Prime Minister Andrej Babis who prefers lower borrowing costs