No surprise took place at CNB board of governors' meeting. Interest rates remained unchanged with current level of 2%. No interesting comments about strengthening CZK exchange rate were provided. CNB's inflation forecast for 2006 is in range 2.4-3.8% and growth of GDP forecast for 2006 in range 3.3-4.5%. However GDP gap is expected to be closed this year, in comparison to previous forecast of 2008. We suppose that the reason why no surprise came out is that real effective exchange rate is approx. 4-5% above equilibrium level.