CNB: Inflation to rise above 2% target tolerance band

Published: 17.08.2021 Related countries:  Egypt Egypt

Inflation will rise well above the upper boundary of the tolerance band of the 2% target in the coming quarters. This stems from a meeting of the Czech National Bank's (CNB) Bank Board.

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