Czech National Bank expected to keep key rate at 3.5 percent

The Czech National Bank’s (CNB) board is expected to keep its key interest rate unchanged at 3.5 percent at its meeting on Thursday, analysts told ČTK. The rate has remained at this level since late May, and experts say persistent inflationary pressures are the main reason for maintaining it at least until the end of the year. According to economists, the Czech economy is growing steadily while inflation risks remain. CNB communication is also expected to stay unchanged, signalling that future rate moves could go either way but that stability is more likely for now. Vice-Governor Eva Zamrazilová recently told Reuters that rates should stay at current levels until the year’s end. Analysts expect the first possible change only early next year, depending on new economic data.