ECB´s policy prevents faster rate hike
Czech National Bank (CNB) plans to raise its interest rates only once more in 2018, even though the economy is overheating. This is due to the European Central Bank´s (ECB) eased policy. CNB´s key interest rate grew to 0,75% following last week´s hike. ECB does not want banks from eurozone to deposit money in CNB and is penalising deposits with -0.4% interest rate. If CNB would raise its rates faster, the difference between interests in the Czech economy and eurozone would grow even more and the koruna would appreciate, which is not planned by CNB.