The Czech National Bank kept its benchmark interest rate at 3.75 percent on Wednesday, with all seven board members voting unanimously to leave borrowing costs unchanged. The central bank also held the lombard rate at 4.75 percent and the discount rate at 2.75 percent.
Governor Aleš Michl said the board sees upside risks to inflation as dominant, noting that consumer prices accelerated to 1.7 percent in July from 1.5 percent the previous month. Fuel prices have also been climbing, with diesel approaching 45 crowns per litre and Natural 95 petrol above 42 crowns.
The central bank downgraded its 2026 economic growth forecast to 2.2 percent and projected average inflation of 2 percent for the year. For 2027, it expects GDP growth of 2.7 percent and inflation of 2.5 percent. The koruna is forecast to trade at 24.30 per euro in 2026 and 24.40 in 2027.