Industrial production in March increased by 12.7% y/y after a revised growth rate of 13.6% in February. Rapidly growing industrial production and an even faster increase in the revenues of industrial companies are just another confirmation that in the 1Q07, the Czech economy didn't slow down at all and it again reached a high rate of growth. This suggestion contributes to our near-term expectation to see higher interest rates. If central bankers are waiting for data confirming a further widening of the expansion of the economy output beyond its non-inflationary potential, they have received a few more items of such data today.