Latest news with #Prague
Reuters
20 hours ago
- Business
- Reuters
Czech central banker Seidler sees limited scope for further rate cut
PRAGUE, July 30 (Reuters) - The scope for another Czech interest rate cut is limited and monetary policy is likely to be stable for some time, as services inflation stays high and the economy improves, central bank policymaker Jakub Seidler said in an interview. Seidler said data has shown economic activity performing better than expected. At the same time, some inflationary risks are materialising, while uncertainties around global trade wars have eased, he told Reuters. The Czech National Bank, which meets on August 7 on policy, has deployed a stop-go strategy since December, cutting rates twice while holding steady three times, including at the last meeting in June when it left the main rate (CZCBIR=ECI), opens new tab at 3.50%. It has cut by a total 350 basis points since 2023. Seidler, who joined the bank's seven-member board last December, said he would support keeping rates steady at the next meeting. "We are still very close to the so-called neutral rate, so I think 'on hold' right now is something that for me is quite a natural choice," Seidler said. "Generally, given all the risks around and better economic activity and weaker uncertainty related to trade wars, the scope for a further cut is very limited unless we see some unexpected event." He said the current environment could mean there would be no cut in rates before the end of the year. "Based on all current information, I would say the (main) rate would stay stable for some time ... Unless we see some unexpected developments, it is even possible that we are done" in the rate-cutting cycle, he said, adding the discussion could again be opened if some inflationary risks calm. In June, headline inflation hit 2.9% year-on-year, at the upper end of the 1 percentage-point tolerance band around the bank's 2% target. Prices of services rose 5.0%, a level Seidler called too high. "I think the disinflationary process in services is slower than I would expect or is desirable, which in my view brings some case for more careful monetary easing," he said. Higher real-estate prices transmitting into imputed rents, along with solid household demand, a shift to services in the economy, and wage growth in the sector are keeping service price growth elevated, he said. Seidler said some inflationary risks in rents, food prices and wage growth were materialising, and he expected a slightly higher inflation forecast for 2025 in the bank's new outlook due next week. An upward revision to the bank's 2025 gross domestic product forecast of 2.0% growth was also likely, he said, speaking before preliminary data on Wednesday showed the GDP increased by 2.4% year-on-year in the second quarter, the same pace as in the first quarter. On a quarter-on-quarter basis, growth slowed. He said a question was still over the extent of pre-stocking or frontloading in industry due to uncertainty over global trade wars, before the European Union and United States reached an agreement in the past week. Overall, he said, the "figures provide reasons for cautious optimism."
Bloomberg
2 days ago
- Business
- Bloomberg
Soaring Czech Home Prices Spell End to Easing, Policymaker Says
Czech interest-rate cuts are 'almost certainly' over for now as the central bank tackles inflation risks from soaring property prices, consumer spending and an improving economic outlook, a senior policymaker said. After a rapid pace of monetary easing last year, rate setters at the Czech National Bank have applied a stop-and-go approach since December. Market bets are predicting a hold on the benchmark rate at 3.5% on Aug. 7, but some analysts still see room for easing in the months ahead.
The Sun
2 days ago
- Entertainment
- The Sun
Girlfriend finally says ‘yes' to besotted boyfriend who popped question 43 times in seven years
A BESOTTED boyfriend popped the question to the love of his life 43 times before she finally said yes. Luke Wintrip, 36, had been desperate to marry Sarah, 38, since 2018. 5 5 But despite his extravagant proposals — including hiring a castle in Prague, horseback- riding on a Jamaican beach, and several candle-lit dinners — she kept turning him down. Marketing CEO Sarah said of the first rejection: 'I just said, 'No, we've only been together for six months'. "I loved him but I didn't want to say 'yes' to something I later retracted.' But tattoo artist Luke vowed to keep persisting. And on the 42nd proposal, Sarah told him: 'Next time you ask, I'm going to say yes, but just you wait.' Luke waited a year before taking Sarah to Greenwich in South East London — the home of Greenwich Mean Time. He said: 'This is the centre of the world and you are the centre of the world and I want you to marry me.' Mum-of-three Sarah, from Chelmsford, Essex, conceded: 'He finally won my heart. "He should probably get a Guinness World Record. I am grateful he persisted for so long.' The couple married in Jamaica in May — although it did not go to plan as Sarah had to struggle through the pain and ended up in hospital with a life-threatening infection when a cyst burst in her groin. Moment woman proposes in Scotland & is stunned by partner's unexpected reaction 5 5
Yahoo
3 days ago
- Sport
- Yahoo
Czechia Putting Olympic Pieces In Place At National Team Camp
Czechia's national team gathered this week in Prague to begin the selection process for their 2026 women's hockey Olympic roster. 46 players participated as the nation looks to win their first ever medal in women's ice hockey at the Olympics after winning their first two bronze medals at the World Championship during this Olympic cycle.
Yahoo
3 days ago
- Automotive
- Yahoo
VW's Skoda posts 12% profit rise in H1 as electric sales grow
PRAGUE (Reuters) -Skoda Auto, a Volkswagen unit, increased the share of electric vehicles in its sales mix in the first half of the year and posted a nearly 12% rise in operating profit to 1.3 billion euros ($1.52 billion), it said on Monday. The Czech carmaker's revenue for the first six months rose nearly 12% year on year to 15.1 billion euros. Switch Auto Insurance and Save Today! Affordable Auto Insurance, Customized for You The Insurance Savings You Expect Great Rates and Award-Winning Service Deliveries were up 14% to 509,400 vehicles in the period. Around 23% of those deliveries were either fully electric or plug-in hybrid models, up from 9.4% in the first half of last year, the company said. Chief Executive Klaus Zellmer said customers had placed more than 120,000 orders for Skoda's all-electric Enyaq and Elroq models by the end of June, highlighting progress in its electrification strategy. European automakers have booked multi-billion-euro losses and issued profit warnings as they struggle to handle competition from China, U.S. import tariffs, and EU regulations aimed at speeding up the EV transition. "Sales relative to the overall market performance, we are doing good," Zellmer told journalists in a video conference. While overall car sales have fallen in Europe this year, sales of electric vehicles - a priority segment for companies like Skoda Auto - have been rising. Zellmer said the company sees big potential with the new Epiq, an electric SUV priced at 25,000 euros that will target entry-level consumers. It plans to launch the Epiq in the first half of 2026. "We put a lot of hope or I would even say ... expectation on that car," he said. "Our current rate of electrified drive train sales ... has to go up." In the European market, Skoda delivered 409,100 vehicles to customers, an increase of nearly 11% that outperformed the overall market and was underpinned by the sales of 72,000 electric vehicles and 21,400 plug-in hybrids, the company said. Skoda also achieved record results in India where it delivered 33,000 vehicles, representing year-on-year growth of 108%, the company said. ($1 = 0.8527 euros) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
