The Czech National Bank (ČNB) will not stop using the exchange rate as a monetary policy tool before 2Q 2017. The central bank expects roughly the middle of 2016 to be the likely date for the abandonment of the intervention regime. According to the ČNB forecast, inflation will further increase to the top half of the tolerance band of the target and will return to the target from above at the horizon of monetary policy. GDP growth will in 2017 and 2018 accelerate to almost 3 %. Continued economic growth will lead to a further increase in salary dynamics. Unemployment will fall only slightly. This is based on the I/2017 Inflation Report released by the ČNB.
