Rusnok: interest rates should be around 3 percent in two years’ time

The fiscal policy of the Czech National Bank should stabilize in the coming year or two, bringing interest rates to around 3 percent, the bank’s governor Jiří Rusnok said on Thursday. Rusnok said that inflation growth estimated at around 2 percent would spur the return to normal. A two percent inflation would mean interest rates of around 3 percent, Rusnok said.

Interest rates in the country have been at a record low for years. The central bank last raised the basic rate at the beginning of November raising it by 0.25 to 0.5 percent.