JIHLAVA, Czech Republic: It would be optimal if the current pause in monetary policy changes is followed by more interest rate growth as rates are still not at normal levels, Governor Jiri Rusnok said on Tuesday.
He said there was no need to rush with further policy changes at the moment following a hike last month that brought the main repo rate to 2.0%. The bank signalled lengthy rate stability ahead following that meeting and a majority on the board agreed the next move could go in either direction.
"It would be optimal if this is just a break, because certainly we are still not at what we consider as a normal level of interest rates," Rusnok told reporters on the sidelines of a central bank roundtable with business representatives.
He said he saw signs of easing pressures in the labour market and did not see a change of trend from a tick-up in May inflation as it was caused by volatile factors.
Comments
Comments are closed.