Czech Interest Rates and Inflation

23.01.2012

Czech interest rates may be left unchanged at a record low through the year 2012 unless the economy shows a “surprise” buildup of inflationary pressures, acc. to the central bank Governor Miroslav Singer. Czech National Bank kept the benchmark rat ...

 

Czech interest rates may be left unchanged at a record low through the year 2012  unless the economy shows a “surprise” buildup of inflationary pressures, acc. to the central bank Governor Miroslav Singer.

Czech National Bank kept the benchmark rate at 0.75 percent, a quarter-point below the European Central Bank’s main rate. The Czech economic outlook is clouded by the debt crisis in the euro area, which takes about 70 percent of the country’s exports.

The Czech inflation rate was 2.4 percent in December, declining from a 35-month high of 2.5 percent in the previous month. The central bank said it may have been influenced by prices rising ahead of the increase in the lower VAT bracket to 14 percent from 10 percent at the beginning of this year.