Economics
Czech Central Banker Finds Comfort in Inflation as Virus Soars
- Deputy governor sees fast price growth boosting consumption
- Nidetzky expects no Czech rate hike for at least one year
The headquarters of the Czech central bank in Prague, Czech Republic.
Photographer: Martin Divisek/BloombergThis article is for subscribers only.
As central banks around the world expand their help to economies hit by the coronavirus pandemic, Czech policy makers can sit tight and let inflation do its work.
After cutting interest rates the most in the European Union this year, the Czech central bank is probably done with easing, Deputy Governor Tomas Nidetzky said in an interview on Monday. It should keep the benchmark at 0.25% for at least a year before considering raising it, he said, as resilient price growth will support a recovery from a virus-triggered recession.