Central bank governor says basic repo rate should not exceed five percent in 2022
Central bank governor Jiří Rusnok told Czech Radio on Monday that although further hikes in interest rates were on the cards it was unlikely that the basic repo rate would exceed five percent next year.
The Czech National Bank last week raised the two-week repo rate by one percentage point to 3.75%, its highest level in 13 years.
Governor Jiří Rusnok said that in view of the soaring inflation, which is expected to reach 7 percent in January, the key interest rate is likely to rise well above four percent. The governor said he expected inflation of around eight percent from February through April, due to the rise in energy prices.