Comment by Jaromír Šindel, Chief Economist at the CBA: While the CNB unsurprisingly left interest rates unchanged with the two-week repo rate at 3.5%, the Board's statement on the monetary policy settings, however, was more surprising in its less hawkish tone, leaving open all possibilities for future monetary policy settings.
Banking sector
Basic indicators on the development of the domestic banking sector in the Czech Republic from official Czech National Bank statistics and compulsorily published data from individual banks
Interest income in bank profits
CZK billion and % of profit, annual aggregate
174.18
billion CZK
Q2 / 2025
Comments
Commentary by Jaromír Šindel, Chief Economist of the CBA: Higher-than-expected wage growth will be the main, but not the only, reason for keeping the interest rate at 3.5% at the CNB's September meeting and for the intensification of the hawkish tone in the communication. The latter may indeed indicate a further upward movement in the interest rate, but rather in an unspecified distant horizon. A stronger koruna or tighter monetary policy through the longer end of the yield curve is unlikely to lead the CNB to a dovish mindset.
Commentary by Miroslav Zámečník, Chief Advisor of the Czech Banking Association
Economic commentary by Jaromir Šindel, Chief Economist of the CBA (adjusted for published data on core inflation from the CNB and registered unemployment data, 18:00 8 August)
Economic commentary by Jaromir Šindel, Chief Economist of the CBA
Commentary by Miroslav Zámečník, Chief Advisor of the Czech Banking Association
Economic commentary by Jaromir Šindel, Chief Economist of the CBA
Commentary by Miroslav Zámečník, Chief Advisor of the Czech Banking Association
Commentary by Miroslav Zámečník, Chief Advisor of the Czech Banking Association
Economic commentary by Jaromir Šindel, Chief Economist of the CBA
Commentary by Miroslav Zámečník, Chief Advisor of the Czech Banking Association
The CNB Bank Board left interest rates unchanged in March.
Economic commentary by Jaromir Šindel, Chief Economist of the CBA
Economic commentary by Jaromir Šindel, Chief Economist of the CBA
Commentary by Miroslav Zámečník, Chief Advisor of the Czech Banking Association
Economic commentary by Jaromír Šindel, Chief Economist of the CBA
Economic commentary by Jakub Seidler, Chief Economist of the CBA
Economic commentary by Jakub Seidler, Chief Economist of the CBA
Economic commentary by Jakub Seidler, Chief Economist of the CBA
Economic commentary by Jakub Seidler, Chief Economist of the CBA
Economic commentary by Jakub Seidler, Chief Economist of the CBA