showCASE 38 | The Czech National Bank: (not) a bellwether for policy reform in the continent
Last week, the Czech National Bank (CNB) decided to increase its base policy interest rate to 0.25%, becoming the first European central bank to move away from prolonged monetary easing. However, one instance of tightening in the Czech Republic is not a bellwether for monetary policy reforms across the continent, as core inflation (as measured by consumer prices) across both the Euro Area and the neighboring Visegrad countries remains far from its target rate.
Photo: Sculpture on the roof of the headquarters of the Czech National Bank in Prague. Source: Aqwis, Wikimedia Commons, CC 3.0