Czech National Bank (CNB) decided on its session on May 5, 2016, to keep the interest rates unchanged. The two-week repo rate stayed at 0.05%, the discount rate at 0.05% and the Lombard rate at 0.25%. CNB board has also decided to continue to use the exchange rate as an instrument for further monetary easing. CNB governor Miroslav Singer has stated that the board expects to abandon the exchange rate commitment in H1 2017. CNB predicts GDP will grow 2.3% in 2016. The inflation will remain close to zero in the coming months. The inflation will approach the target set by the central bank within the monetary policy’s horizon. Inflation will total 1.8% in Q2 2017 and 2.2% in Q3 2017, CNB predicts.
Source: www.cianews.cz
