Transcript of the questions and answers from the press conference

I’d like to ask about your decision today to prefer interest rate stability even though the forecast implied quite a large increase of about 100 basis points in this quarter. Can you please explain this preference? Is it due to uncertainty regarding the forecast as such, or the evolution of the economy? Or should we understand it as a preference to smooth the curve, i.e. to tighten conditions less than implied by the forecast, but for longer?

We prefer above all stable conditions for the economy. I think that was our main criterion. Yes, according to the macroeconomic model we should now considerably increase interest rates and we should lower them considerably again in some time, in a few quarters, even below the current level. So, a majority of the Bank Board decided to send a clear signal that we want to act as a firm anchor stabilising conditions in the economy.

To follow up on the previous question, I’d like to ask whether it may also mean that your current decision not to raise rates now also implies a smaller decrease at a later time. The forecast now expects the PRIBOR to average 7% next year, if I’m not mistaken. Would that more or less imply that the Czech National Bank’s official repo rate could also stay unchanged for the whole of next year, or the next 12 months?

The only thing we are communicating now is that we will assess all the data at the next Bank Board meeting and decide whether rates will remain stable or increase. And we will proceed like this meeting by meeting. There is no alternative answer to your question.