Czech National Bank faces tough decision on interest rates

Jan Frait: Jan Frait is a deputy governor of the Czech National Bank and a member of its monetary-policy decision-making board. He said officials face a difficult choice over whether to tighten policy again, citing intensified energy-cost risks while noting that domestic conditions behind the previous increase have softened slightly. Czech policymakers: Czech policymakers in this context are officials responsible for monetary-policy decisions at the Czech National Bank, which sets interest rates to manage inflation and economic risks. They are weighing another rate increase at the November meeting amid stronger energy-related inflation risks and higher market borrowing costs. Inflation risk: The central bank has identified commodity and energy-market developments as intensified upside risks to inflation. Monetary policy: The Czech National Bank kept its two-week repo rate unchanged at its September meeting but indicated that the next decision could be between holding rates and raising them. Market conditions: Higher longer-term market rates have already tightened borrowing conditions independently of an additional central-bank rate increase.