Czech Policymaker Cautions 2026 Rate Hike Bets May Be Premature

Czech interest rates are more likely to increase than decline, though expectations of a hike next year may be premature, according to central banker Jan Kubicek.

Policymakers face a clouded inflation outlook as a new government is set to pursue measures that may push consumer prices in either direction. While officials have signaled they’ll again hold the benchmark at 3.5% next week, money markets have already shown positioning for monetary tightening as early as next year.