Monetary policy

According to the Czech Constitution and the Act on the Czech National Bank (pdf, 270 kB), the CNB’s primary objective is to maintain price stability. Without prejudice to its primary objective, the CNB also supports the general economic policies of the Government. The CNB achieves its primary objective – price stability – by making changes to the monetary conditions using its instruments, especially key interest rates. The monetary policy decisions of the CNB Bank Board are based on the current macroeconomic forecast and an assessment of the risks to its fulfilment. On the Czech Republic’s entry into the euro area, the CNB will cede independent monetary policy to the European Central Bank.

The individual subsections of the “Monetary policy” section describe the monetary policy objective, the definition of price stability, the CNB’s monetary policy regime, i.e. inflation targeting, and the monetary policy instruments used by the CNB. It contains the current inflation forecast and the quarterly Inflation Report. The subsection “CNB Board decisions” contains the Bank Board’s monetary policy decisions in the form of written minutes of its meetings as well as presentations and audio recordings from the press conferences that follow each monetary policy meeting. The subsection “Strategic documents” includes, for example, documents relating to the announcement of the inflation target, analyses of the Czech Republic’s alignment with the euro area and The Czech Republic’s Updated Euro-area Accession Strategy. An electronic quarterly Central Bank Monitoring is available for anyone interested in recent monetary policy developments in other central banks. The latest predictions and outlooks of selected international institutions for the main economic areas of the world, including an analysis of a selected issue from the world economy, can be found in the monthly Global Economic Outlook. An analysis of the evolution of the individual items of the Czech Republic's balance of payments is provided in the Balance of Payments Report, which is published annually.