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Czech Central Banker Zamrazilova Says Inflation Target Can Be Insufficient

Central banks should use more “expert discretion” in setting interest rates as inflation targeting alone won’t stop asset bubbles, Czech policy maker Eva Zamrazilova said in a commentary printed by Hospodarske Noviny.

Consumer inflation indexes used by most central banks as a basis for their policy decisions do not account for asset prices, Zamrazilova wrote in the Prague-based newspaper today.

“On the back of today’s extremely low interest levels, a germ of a new problem is probably being born somewhere,” Zamrazilova wrote in the opinion piece.

To contact the reporter on this story: Krystof Chamonikolas in Prague at kchamonikola@bloomberg.net.

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