A Czech policy maker has said that the best option for interest rates now is to smooth out the rate path. According to an article from BNN Bloomberg, the Czech National Bank’s Vice Governor, Monika Kubelkova, stated that the bank is keeping a close eye on inflation and the country’s economic recovery. She added that the bank will also consider external factors, such as the monetary policy of the European Central Bank and global economic developments when making decisions about interest rates.

Kubelkova also stated that the bank is prepared to adjust interest rates if necessary, but that the current rate is adequate to support the country’s economic recovery. She went on to say that the bank should focus on smoothing out the rate path in order to provide a stable environment for the economy.

The Czech National Bank has held its benchmark interest rate at a record low of 0.25% since May 2020 to support the country’s economy during the pandemic. The bank is monitoring the situation closely and will make any necessary adjustments to the interest rate to ensure economic stability.

Article by Prague Forum