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As expected, the Czech National Bank (ČNB) has left its key interest rate unchanged at 3.5 percent, where it has stood since early May. The decision, announced by ČNB spokesperson Jakub Holas, aligns with market expectations. Governor Aleš Michl will explain the move and present a new macroeconomic forecast at a press conference this afternoon. The bank also maintained the lombard rate at 4.5 percent and the discount rate at 2.5 percent. After holding the base rate at 7 percent during the inflation wave, the central bank began cutting rates in December 2023, most recently lowering them by a quarter point in May.

A new geological survey by the state-owned company Diamo has revealed that deposits near Zlaté Hory in northern Moravia contain almost 11 tonnes of gold—five times more than previously estimated. The find is valued at nearly 30 billion crowns, though only part of it could be mined profitably. Gold mining in Czechia ceased more than 30 years ago, but rising global prices and recent survey results have revived debate about resuming extraction. Local authorities, however, remain firmly opposed to reopening the mines.

Finance Minister Zbyněk Stanjura of Civic Democrats (ODS) said he wants the emerging coalition of ANO, the Freedom and Direct Democracy (SPD), and the Motorists’ parties to guarantee that the 2026 state budget will preserve planned spending on defence and the loan for new nuclear units in Dukovany. He considers this a condition for resubmitting the draft budget to parliament. The outgoing government proposed a deficit of 286 billion crowns, while the legally allowed limit is 237 billion. Stanjura said the extra 49 billion covers defence spending above two percent of GDP and the Dukovany loan, both exempt from fiscal rules.

Industrial production in Czechia rose by 0.4 percent year on year in September, returning to growth after a decline in August, according to data published by the Czech Statistical Office (ČSÚ). Month on month, production increased by 1.1 percent, while the value of new orders was up 4.5 percent. Growth was driven mainly by the metalworking, rubber, and electrical equipment industries, while automobile production declined. New foreign orders rose by 5.6 percent, and domestic ones by 2.7 percent. The number of industrial employees fell by 1.6 percent compared to last year.