Central bank worsens outlook for economic growth this year

The Czech National Bank has worsened its outlook for Czech economic growth. According to its latest forecast, the GDP will grow by 0.1 percent this year, compared to the previous 0.5 percent growth forecast issued in May. A turn for the better is expected in 2024, when GDP growth should reach 2.3 percent. However, even in this case the central bank revised its forecast downwards compared to May, when it predicted a 3 percent growth in 2024. In 2025 the GDP is expected to grow by 2.7 per cent.

As expected, the bank board left the key interest rate unchanged at 7 %. The base rate has been at the same level since last June.