6 out of 7 ČNB board members vote to keep interest rates on hold

Six of the seven board members of the Czech National Bank voted on Wednesday to keep the benchmark rate unchanged at 2 percent, bank governor Jiří Rusnok told a news conference.

The central bank had voted unanimously in May to raise borrowing costs for an eighth time in two years. At the policy-setting meeting on Wednesday, one board member voted to raise interest rates by a quarter of a percentage point.

The bank’s latest outlook assumes no policy change for a year. Although inflation unexpectedly accelerated in May towards the top of its 1-3 percent tolerance band, Rusnok said the jump had been driven mainly by volatile food prices and so there was no reason to react.

Author: Brian Kenety