Reuters exclusively reported that the Czech central bank will begin debating lowering interest rates as soon as this autumn as it expects inflation to drop sharply particularly at the beginning of next year.
Czech central bank’s Frait expects rate cut debate this autumn
With inflation on a downward path across central Europe, markets are betting on who may follow Hungary in easing monetary policy. Vice-Governor Jan Frait expected the drop in inflation to be “very strong” at the start of 2024, when the central bank’s forecast sees price growth falling near its 2% target, from 9.7% in June. He also said the crown, which has lost 3.3% versus the euro since a 15-year high in April, was resilient to narrowing interest rate differentials.