Czechs See Little Room for Rate Cuts as Inflation Risks Increase

The Czech central bank signaled that interest rates will remain on hold at least for several months, saying inflationary risks prevented a cut in borrowing costs at a meeting on Wednesday.

The Czech National Bank kept the benchmark at 3.5%, the lowest level since 2021. While rate setters have applied a stop-and-go approach since December, which brought quarter-point reductions in February and May, they now see more pressure on consumer prices, according to Governor Ales Michl.