Czech Central Bank Chief Warns Against Keeping Rates Too Low

The Czech central bank was right to bring interest rates lower but policymakers must avoid repeating the mistake of holding borrowing costs extremely low for a long period, according to Governor Ales Michl.

The Czech National Bank held the benchmark rate at 3.5% at the last two meetings, after slashing it by a cumulative 3.5 percentage points during an easing cycle that started in late 2023.