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05.02.202613:49:02UTC+00Czech National Bank Leaves Interest Rates Steady

The Czech National Bank opted to maintain its two-week repo rate at 3.5% in February 2026, in line with expectations, sustaining the rate established in May 2025. Policymakers have consistently highlighted domestic risks, including the budget deficit, surging service and housing costs, and wage growth, as hurdles to further monetary easing. Meanwhile, headline inflation moderated more than anticipated, reaching a nine-year low of 1.6% in January, down from 2.1% in December. However, services inflation—a metric under close observation—remained high at 4.7%. While there could be potential for rate cuts this year, more concrete signs of reducing inflationary pressures will be essential to support such a decision.

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