Czech economy grows strongly in Q3, CNB likely to stay on hold

The Czech economy grew strongly in the third quarter. On a year-on-year basis, the economy expanded 5 percent in the September quarter. This is the flash estimate; however, it affirms the excellent condition of the domestic economy. Therefore, this year would be one of the most successful for the Czech economy in history. The labor market is performing well now. Employment is at the highest and unemployment is at all-time lows.

“We should add that the preliminary GDP figures are exactly in line with the latest CNB forecast, so the central bank did not get the impetus through this and actually also the latest inflation figures to speed up its restrictive endeavours”, stated KBC Market Research.

The Czech National Bank anticipates the third quarter rate to come in at 7.5 percent. The Czech central bank is expected to keep its interest rate on hold.

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