Latest news with #CzechNationalBank
Bloomberg
13-05-2025
- Business
- Bloomberg
Czech Central Bank Says Services Costs Call for Cautious Policy
Czech costs of services remain a key risk for price stability and require a cautious monetary-policy stance, according to the central bank. Data published on Tuesday showed that core inflation, a measure of underlying demand pressures in the domestic economy, accelerated slightly in April to 2.6%, matching the Czech National Bank's forecast. That contrasts with the headline growth in consumer prices, which was the slowest in seven years and dropped below the 2% target last month.
Washington Post
07-05-2025
- Business
- Washington Post
Czech central bank cuts key interest rate to 3.5% as inflation drops more than expected
PRAGUE — The Czech Republic's central bank cut its key interest rate again on Wednesday, with lower-than-expected inflation. The cut brought the interest rate down by a quarter of a percentage point to 3.50%. The bank had kept the rate unchanged at its previous policy meeting in March.
The Independent
07-05-2025
- Business
- The Independent
Czech central bank cuts key interest rate to 3.5% as inflation drops more than expected
The Czech Republic's central bank cut its key interest rate again on Wednesday, with lower-than-expected inflation. The cut brought the interest rate down by a quarter of a percentage point to 3.50%. The bank had kept the rate unchanged at its previous policy meeting in March. Analysts predicted the cut was likely, but also said the uncertainty over the tariff policies of U.S. President Donald Trump was an argument in favor of no change. The bank started to trim borrowing costs by a quarter-point on Dec. 21, 2023, to boost the economy, and further cut rates by half or a quarter of a percentage point several times last year. Inflation dropped to 1.8% year-on-year in April, the lowest level in seven years, preliminary data by the Czech Statistics Office indicated on Tuesday. It was 2.7% year-on-year in March. The size of the Czech economy was up 1% in 2024 compared with the previous year. The European Central Bank, which sets interest rates for the 20 countries that use the euro currency, lowered its benchmark rate by a quarter percentage point to 2.25% on April 17 for the seventh time. The U.S. Federal Reserve was expected to keep its key short-term interest rate unchanged at about 4.3% later on Wednesday, despite weeks of harsh criticism and demands from Trump that the Fed reduce borrowing costs.
Associated Press
07-05-2025
- Business
- Associated Press
Czech central bank cuts key interest rate to 3.5% as inflation drops more than expected
Updated [hour]:[minute] [AMPM] [timezone], [monthFull] [day], [year] PRAGUE (AP) — The Czech Republic's central bank cut its key interest rate Wednesday again , with lower-than-expected inflation. The cut brought the interest rate down by a quarter of a percentage point to 3.50%. The bank had kept the rate unchanged at its previous policy meeting in March. Analysts predicted the cut was likely, but also said the uncertainty over the tariff policies of U.S. President Donald Trump was an argument in favor of no change. The bank started to trim borrowing costs by a quarter-point on Dec. 21 , 2023 to boost the economy, and further cut rates by half or a quarter of a percentage point several times last year. Inflation dropped to 1.8% year-on-year in April, the lowest level in seven years, preliminary data by the Czech Statistics Office indicated on Tuesday. It was 2.7% year-on-year in March. The size of the Czech economy was up 1% in 2024 compared with the previous year. The European Central Bank , which sets interest rates for the 20 countries that use the euro currency, lowered its benchmark rate by a quarter percentage point to 2.25% on April 17 for the seventh time. The U.S. Federal Reserve was expected to keep its key short-term interest rate unchanged at about 4.3% later on Wednesday, despite weeks of harsh criticism and demands from Trump that the Fed reduce borrowing costs. The Associated Press is an independent global news organization dedicated to factual reporting. Founded in 1846, AP today remains the most trusted source of fast, accurate, unbiased news in all formats and the essential provider of the technology and services vital to the news business. More than half the world's population sees AP journalism every day.
Yahoo
26-03-2025
- Business
- Yahoo
Czechs Halt Rate Cuts Again as Defense Plans Add to Price Risks
(Bloomberg) -- Czech policymakers paused monetary easing for the second time in the past three months as domestic inflation risks persist, while global trade and geopolitical tensions cloud the economic outlook. They Built a Secret Apartment in a Mall. Now the Mall Is Dying. Why Did the Government Declare War on My Adorable Tiny Truck? Trump Slashed International Aid. Geneva Is Feeling the Impact. How SUVs Are Making Traffic Worse Paris Votes to Make 500 More Streets Car-Free The central bank in Prague held the key interest rate at 3.75% on Wednesday, as expected by most analysts. The decision followed a string of rapid-fire cuts last year, a pause in December and a quarter-point reduction in February. Officials are confronted by conflicting forces, including price pressures in domestic services and housing, weak exports, the prospect of trade wars and plans to increase European military spending. Inflation is likely to hover in the upper half of the Czech National Bank's 1%-3% tolerance range for the rest of the year, reducing the room for further easing, according to ING Group NV economists David Havrlant and Frantisek Taborsky. 'An improved outlook for economic growth, driven by an expected boost to defense spending, will influence the tightness in the labor market, robust wage gains, and upbeat inflation pressures,' they said in a report before the meeting. 'The renewed convergence requires relatively tight monetary policy.' Governor Ales Michl is scheduled to comment on the decision and the economic outlook during a press conference starting at 3 p.m. in Prague. Before the meeting, policymakers expressed concerns about sticky services inflation, faster-than-expected wage growth and the potential impact of debt-financed investment in European defense and infrastructure. Food prices are another reason for caution. While the central bank would normally look past such volatile items, the recent period of double-digit inflation has made Czech consumers more sensitive to food costs and they have a major impact on their inflation expectations. Money market prices show bets on less than 50 basis points of easing within the next 12 months. The koruna has advanced 0.5% against the euro this month and potentially more hawkish rhetoric may provide a further boost to the currency. Business Schools Are Back Google Is Searching for an Answer to ChatGPT The Richest Americans Kept the Economy Booming. What Happens When They Stop Spending? A New 'China Shock' Is Destroying Jobs Around the World How TD Became America's Most Convenient Bank for Money Launderers ©2025 Bloomberg L.P.
