Czech National Bank Vice-Governor Eva Zamrazilova says the Bank could cut interest rates by 25 or 50 basis points at its May 2 meeting.
- increases in services prices were an inflation risk
- "That is also a reason why I am cautious when it comes to cutting interest rates," she said. "I have a cut by 0.25 or 0.5 percentage points in my head. I will see what the (new) situation report shows, but certainly (the cut) will not be sharper"
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The Czech National Bank started its easing cycle in December 2023
- has so far reduced the key rate by 125 basis points to 5.75%
- including cuts of 50 basis points at each of its February and March meetings
The US dollar has been strong against CZK too:
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The Czech Republic, also known as Czechia, is a member of the European Union (EU). While an EU member, it has not adopted the euro as its official currency, which means it does not participate in the Eurosystem and the monetary policy decisions of the ECB. Instead, the Czech National Bank manages the monetary policy for the koruna (crown).
The CNB is a part of the European System of Central Banks (ESCB). ESCB comprises the European Central Bank (ECB) and the national central banks of all EU Member States.
