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ČNB: Inflation to not grow yet

The Bank Board of the Czech National Bank (ČNB) has decided to still use the exchange rate as another tool for monetary conditions easing and confirmed the commitment of the Czech crown exchange rate at around CZK 27/EUR. The board also kept rates on their current level. According to ČNB, consumer prices will be around the zero level in the Czech Republic in Q1. Inflation will likely reach 0.1% in January, 0.0% in February, and 0.1% in March. The central bank said in its prediction that the economy will increase by 2.6% this year and 3.0% in 2016. ČNB expects to use the exchange rate as the monetary policy tool at least until 2016.



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