Wednesday May 25, 2022

Bank Lzal: In the Czech Republic, rates may rise in the autumn

In the autumn, the Czech National Bank is likely to follow in the footsteps of the European Central Bank and raise rates. In an interview with esk radio, the bank said NB Lubomr Lzal. In the market, such a step would mean a hefty loan, an exchange rate exchange rate and no inflation.

The first threat of inflation in April prompted the European Central Bank to increase its interest rates from one to 1.25 percent (the European Union is raising rates).

The base year rate of the National Bank is now 0.75 percent. The last time it moved last May was, surprisingly downwards by a quarter of a percentage point (see here).

This year, the market has raised rates in R and now NB banks, Lubomr Lzal admitted that the central bank is in favor of this step. “At the moment, if I start from the forecast for the institution, in fact yes, in the autumn there should be a time when the rates will probably be increased, but this is based on current information,” said Studio esko Lzal in the discussion program.

According to him, the development of inflation in the Czech Republic will be decisive. However, he said that the threat of inflation in the EU may not be the same as in the Czech Republic, which also applies to the decision-making of domestic banks. According to Lzalabude hrt role smnn course.

It is clear that the weak koruna in the minds of Czech banks to raise years of rates, the growth of rates as a result means a strengthening of the exchange rate.

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