The central bank holds borrowing costs steady for the third consecutive meeting, citing inflation risks and global uncertainty.
The Czech National Bank left its benchmark interest rate unchanged at 3.50%, the highest level since 2019, as policymakers assess persistent inflationary pressures. The decision aligns with expectations following two prior holds in August and September, though inflation remains above the bank’s 2% target.
Analysts had widely anticipated the move, with markets pricing in no change amid heightened geopolitical risks, particularly tensions in the Middle East. The bank’s statement noted that domestic economic activity remains weak, but inflation risks warrant caution.
The koruna showed little reaction, trading near 24.50 per euro, as the decision matched consensus forecasts. Further rate cuts are not expected until early 2025, pending inflation data.