New governor of Czech National Bank takes the reins

The new governor of the Czech National Bank, Aleš Michl, took up office on Friday. He stated in an announcement on the Czech National Bank’s own website that his main priority will be to reduce inflation. Year-on-year inflation in the Czech Republic rose to 16 percent in May from 14.2 percent in April, and thus remains the highest the country has experienced since December 1993.

Mr. Michl is replacing Jiří Rusnok as head of the bank and is opposed to the current cycle of interest rate hikes. His appointment caused conflicting reactions on the political and economic scene, with the Czech crown sharply weakening.