Interview with Eva Zamrazilová, CNB Deputy Governor
By Jan Lopatka (Reuters 9. 9. 2026)
Czech economic development does not require a policy change this month, but inflation risks continue to be on the upside and monetary policy needs to remain restrictive, central bank Vice Governor Eva Zamrazilova said in an interview.
The bank raised its key repo rate to 3.75% in June, providing room above inflation despite its forecast rise due to an expected upturn in food prices, expensive fuels, and a statistical effect of energy price subsidies which will spur the price index in January.
“In my view, there are not many reasons for a change” when the bank’s board meets on September 17, Zamrazilova told Reuters in an interview on Tuesday afternoon.
Going forward, the board will assess new data and a new economic forecast due in November.
“This is really about the level of restriction and we will not commit to anything. We will simply pursue a data-dependent policy,” she said.
Zamrazilova said she saw risks from core inflation, inflation in services, real estate prices, a tight labour market, loans to the private sector, and debt financing of public spending.
“I clearly see the risks of achieving the inflation target in the medium term as rather pro-inflationary,” she said.
The government is discussing a shortfall of around 3.5% of gross domestic product next year, though junior partners in the government demand savings.
Food prices will turn up
Financial markets have been pricing higher short-term rates in the coming months.
Zamrazilova said this was out of line with analyst consensus and due to other factors than likely policy moves.
“The reasons are specific to the financial markets. It can be related to risk premiums, it could be the problems on the oil market.”
She said food prices have been dragging inflation down longer than expected despite a drought and higher fuel and fertiliser prices.
The headline inflation was at 1.9% in August, according to a flash estimate, below the bank’s 2% target.
“At this moment, the relatively stubborn persistent price increase in services is compensated by falling food prices, which is surprising,” she said.
“It is not a question of whether food prices will turn in a pro-growth, pro-inflationary direction, but when,” she added, saying it would happen definitely “within the next few months”.
Zamrazilova said a downward revision of wage growth for the first quarter to 6.1% from 8.1% gave relief, because if the number was confirmed, it would be a reason to consider an interest rate hike.
In the second quarter, wages grew by 6.4%, which Zamrazilova said was still above a sustainable rate of at most 5%.