Gross domestic product 2.2 % yoy Rise in consumer prices (inflation) 1.9 % yoy Industrial production 0.3 % yoy Gross domestic product development 2.2 % yoy Wage trends 8.1 % yoy (nominal) Monthly Changes in Consumer Prices (Inflation) 2.1 % YoY total Post-Covid revival of economic activity 1.5 %yoy (04-2026) Unemployment 4.96 % (05-2026) Trust indicators -1.3 % yoy

The CNB hiked the policy rate to 3.75% and will likely keep them there until the autumn Low inflation may be misleading. Domestic pressures could prompt the CNB to raise interest rates. April industrial numbers show solid economic health April's decline in retail sales does not change the outlook for consumption. However, risks are increasing in the second quarter Lower May inflation with stronger wage growth poses a triple dilemma for the CNB

Banking Sector Assets 11 911.00 billion CZK Number of employees 37 919 Number of Banks by Size 43 (total) Bank Profits in the Economy 128.76 billion CZK Profitability of the Banking Sector 1.12 % return on assets Capital Adequacy and the Role of Profit in It 23.14 % Net interest income 1.56 % of assets Interest income and expenses 45.65 billion CZK Interest Income in Banks' Profits 179.28 billion CZK

CNB tightens banks' capital buffer. Responds to faster credit growth and new risks, including fiscal Banking statistics for March 2026 Market forces in mortgage rates: the rise in market interest rates has only partially been reflected in mortgage rates. Strong competition in the market is helping. Banking statistics for February 2026 Loans are mainly driven by mortgages, which is why the CNB left the countercyclical reserve at 1.25%, but with the risk of an increase

Credit dynamics 8.6 % yoy Deposit dynamics 5.0 % yoy Ratio of non-performing loans 1.5 % New loans in the economy 138.2 billion CZK New loans in the economy in detail 66 billion CZK Interest rates on new loans 4.5 %

The CNB hiked the policy rate to 3.75% and will likely keep them there until the autumn CNB tightens banks' capital buffer. Responds to faster credit growth and new risks, including fiscal Stronger wave of mortgage refixing, while the interest-rate shock eases. Higher inflation remains a risk. Banking statistics for March 2026 Market forces in mortgage rates: the rise in market interest rates has only partially been reflected in mortgage rates. Strong competition in the market is helping.

Number and total amount of new mortgages granted, including refinancing and loan increases 54 thousand; YTD Number and volume of new mortgages granted, excluding refinancing and loan increases 38 thousand; YTD Average interest rate on new mortgages 4.67 % Average size of a new mortgage 4.84 million CZK Illustrative average monthly payment on a new mortgage 26 347 CZK Total volume of mortgages issued for the entire year 388 billion CZK

CBA Hypomonitor: A slight increase in the mortgage rate to 4.67% sustained solid activity in May CBA Hypomonitor: April also rewrote mortgage highs with still low rate of 4.52% Stronger wave of mortgage refixing, while the interest-rate shock eases. Higher inflation remains a risk. CBA Hypomonitor: March continued with a temporary boom in mortgages, thanks to a lower rate of 4.43%. Market forces in mortgage rates: the rise in market interest rates has only partially been reflected in mortgage rates. Strong competition in the market is helping.

Trends in Real Estate Asking Prices 12.9 % yoy Trends in Actual Prices of Older Apartments 14.5 % yoy Changes in actual apartment prices in Prague, % yoy 12.1 % yoy Prices of new and nearly new apartments and the number of transactions 9.4 % yoy Prices of older apartments and the number of transactions 9.2 % yoy Prices of apartments and single-family homes 4.7 % yoy Prices of new and nearly new apartments by region 141.0 thousand CZK per square meter Prices of older apartments by regional capital 77.4 thousand CZK per square meter Prices of single-family homes by regional capital 6.39 (price per house in millions of CZK)

Realized apartment prices are rising more slowly, but the regional markets have not yet cooled off Strong pace of growth in supply prices of flats also at the beginning of 2026 Stronger household incomes outpaced house price growth for six quarters House prices up 12 percent last year, rental housing up 10 percent in some regions House prices have maintained 10% momentum, which is not the case for disposable income

CBA forecast: gross domestic product 2.0 % yoy CBA forecast: consumer prices (inflation) 2.5 % yoy CBA forecast: average wage 6.1 % yoy CBA forecast: unemployment 4.8 % CBA forecast: CNB interest rate 3.50 % CBA forecast: exchange rate against the euro 24.4 CZK/euro

CBA Macroeconomic Forecast 2Q26 (Part 2): interview with Helena Horská CBA Macroeconomic Forecast 2Q26 (Part 1): interview with economist Petr Gapek MACROECONOMIC FORECAST OF THE CZECH REPUBLIC 2Q 26 CBA Macroeconomic Forecast 1Q26 (Part 2): interview with economist Pavel Sobíšek CBA Macroeconomic Forecast 1Q26 (Part 1): interview with economist Jan Vejmělek