Europe May See Rate Hikes in 2021 as Czechs Mull Tightening

The Czech Republic may raise interest rates as many as two times this year, central bank Governor Jiri Rusnok said, departing from the global trend of pursuing ultra-loose monetary policy against the Covid-19 crisis.

Rusnok, speaking in an interview, said he sees economic growth picking up in the second half of the year, partly due to progress on vaccinations. He said unemployment, which is the European Union’s lowest, is also expected to remain subdued and keep pressure on consumer prices.