The CNB board left Czech interest rates unchanged, at 5.25% (the 2-week repo rate), as expected. We continue to expect stable interest rates for most of the rest of this year. The central bank also indicated that it does not intend to intervene on the foreign-exchange market, despite the koruna’s recent strengthening. Also, the CNB seems to have raised its GDP expectation for this year to a range of 1.5-2.5%.
(Ondřej Daťka)