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19.03.202614:54:55UTC+00Czech Bank Holds Rate as Expected

The Czech National Bank left its benchmark two-week repo rate unchanged at 3.5% at its March 2026 meeting, in line with market expectations, extending the holding period that began after the rate cut in May of last year. The Bank Board noted that underlying inflation has remained close to the 2% target for more than two years, indicating that financial conditions are appropriately calibrated. The Monetary Department’s baseline scenario projects headline inflation to stay below 2% this year, contingent on the eventual normalization of energy prices, which have surged since the outbreak of conflict in the Middle East earlier this month. The CNB emphasized that the uncertain outlook calls for openness to various policy responses, in line with the communication of other European central banks.

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