Skip to content
Subscriber Only
Markets
Economics

Czechs Are Ready to Keep Raising Rates Despite Virus, Mora Says

  • Central bank must stop inflation surge from getting entrenched
  • Vice governor sees limited economic impact of Covid measures
Rush hour morning commuters exit Vysehrad Metro station in Prague. 

Rush hour morning commuters exit Vysehrad Metro station in Prague. 

Photographer: Milan Jaros/Bloomberg

The Czech central bank expects only a limited economic fallout from the worsening pandemic and remains prepared for more interest-rate increases to curb surging inflation, according to one of its vice governors.

The country “has learned to live with Covid” and potential lockdown measures are unlikely to significantly hurt consumption and investments, Marek Mora said in a Nov. 23 video posted on the central bank’s website on Saturday. Policy makers are obliged to tackle the fastest consumer price growth in 13 years to prevent inflation expectations from getting out of control, he said.