off-the-wire

Czech central bank: demand, foreign cost pressures remain but easing

Kitco Media
By Reuters
Published:
Updated:
Reuters
PRAGUE, March 29 (Reuters) - The Czech economy faces domestic demand and foreign cost pressures but both are easing, the Czech central bank said as it showed no signs of easing policy soon after it held its main rate flat at 7% on Wednesday. The bank's board voted 6-1 for stable rates , with the dissenting vote in favour of a 25 basis-point hike.


The bank said it would decide at its next meeting in May whether to keep rates steady or hike, reiterating its stance signalling no easing soon. The bank said that it observed a major slowdown in property and mortgage markets, which would help reduce core inflation. On the other hand, it said unemployment remained low while wages in construction and industry showed significant growth in Jaunary. It said it would thoroughly assess wages at the May policy meeting.



(Reporting by Jan Lopatka and Robert Muller, editing by Jason Hovet)

Messaging: jan.lopatka.thomsonreuters.com@reuters.net))
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