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Czech Rates May Exceed 6% in June, Central Bank Head Rusnok Says

  • Rusnok says June decision will be based on new economic data
  • Policy outlook is clouded as next governor wants stable rates
The Czech National Bank building in Prague. 

The Czech National Bank building in Prague. 

Photographer: Adam Berry/Bloomberg

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The Czech central bank will probably need to raise interest rates again next month, possibly above 6%, if new data confirm persistent inflation risks, according to Governor Jiri Rusnok.

The Czech National Bank has lifted borrowing costs by a cumulative 550 basis points in eight steps since June last year. The latest move this month brought the benchmark rate to 5.75%, the highest since 1999.