Tuesday, 21 November 2017

ČNB: Rates should be raised gradually

CIA News |
13 November 2017

The raising of interest rates supports the financial stability target, according to the Czech National Bank (CNB). At the same time, it is desirable to raise basic rates incrementally.

Rapid rate hike could have a counter-productive effect on financial stability due to being an excessive burden for the indebted organisations. This stems from the CNB board minutes from November 2, 2017.

If the development in coming months confirms the implementation of pro-inflation risks, any of the upcoming monetary policy sessions may be used for further tightening of the monetary policy, the board has stated.