Czech central bank leaves interest rates unchanged at 2 pct

The Czech National Bank (CNB) Board decided unanimously on Thursday to leave interest rates unchanged. The basic interest rate on which commercial interest rates are derived thus remains at 2 percent, according to the central bank.

“The Bank Board’s decision is based on a new macroeconomic forecast, “said the statement of the central bank.

In its new forecast, the bank improved its estimate of growth in the Czech economy this year to 2.6 percent and next year to 2.9 percent. In the previous May forecast, the central bank expected the economy to grow by 2.5 percent this year and by 2.8 percent next year.

Inflation will remain above the Czech National Bank’s 2 percent target in the coming quarters, but still within its tolerance band, said the statement.