CNB likely to unlikely to change monetary policy settings in March

The Czech National Bank is set to meet this week for its monetary policy decision. According to a KBC Market Research report, the central bank board is unlikely to make any changes to its monetary policy settings.

The CNB is most likely to be satisfied with the current economic development and the current inflation deviation from the forecast would not be considered as a major reason for altering the outlook. The main obstacle to the continuation of normalization of interest rates in the Czech Republic continues to be extremely relaxed policy of the ECB.

“Nevertheless, we are expecting another interest rate increase this year, which the CNB could adopt in the second half of the year”, added KBC Market Research.

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