Central Banks
Czech Central Banker Says 2023 Cut Possible But Caution Needed
- Frait says he can’t rule out easing in November or December
- Caution needed as policy now ‘more art than science’
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The Czech central bank may consider lowering borrowing costs this year, but any monetary easing will be “very cautious” and most likely happen at a slower pace than investors expect, Vice Governor Jan Frait said.
While central bankers will discuss strategy for future rate cuts in depth next week, they will almost certainly keep the benchmark at its two-decade high of 7%, Frait said in an interview Monday. He added that even if the board agreed to lower rates in a following meeting, money-market bets for about 70 basis points of cuts this year are “very unlikely” to materialize.