Analysts: Central bank may increase basic interest rate next week
The board of governors of the Czech National Bank could increase the basic interest rate by 0.25 percent to 1.0 percent at a meeting scheduled for Wednesday, the Czech News Agency reported, citing the views of analysts.
The experts say that the main reason for such a move would be the fact the Czech crown is weaker toward the euro than the central bank estimated. In addition, wage growth and inflation are higher than the bank expected.
The analysts believe that if the CNB doesn’t raise interest rates this month it will likely do so at the start of August.