The Czech National Bank will reduce interest rates, but in the long term they will be higher than they were before inflation | Opinions

The new NB forecast will most likely represent a significant growth in the real economy together with an increase in domestic demand. We look forward to a discussion on the dark neutral real-year rate, which could contribute to your view of the nominal rate at the end of the year.

Inflation in cli

After those years of high growth in consumer prices, inflation dropped to two percent. Together with the wave of inflation and the drop in real wages, however, household budgets came under pressure, resulting in anemic economic performance. Overall, the situation is ripe for more relaxed annual rates. With the observed inflation well below the current NB forecast, it is also possible to underlie the inflation rate in the following months, if there is no known evidence of household income bearing a pro-inflationary effect.