Inflation will rise well above the upper boundary of the tolerance
band of the 2% target in the coming quarters. Inflation will return
towards the target in 2022, helped by a tightening of monetary
conditions. This stems from a meeting of the Czech National Bank's
(CNB) Bank Board. The board assessed the uncertainties and risks
of the new forecast as weakly anti-inflationary in aggregate. The
upside risk to the forecast is the greater extent or longer duration of
congestion in global supply chains, which could translate into even
stronger output price growth. Most members agreed that interest
rate normalisation would also contribute to the objective of financial
stability, particularly through a cooling of the real estate market.
Source: www.cianews.cz/en
Prepared by the team of CzechTrade Cairo