Czech Central Bank Urges Government to Balance the Budget

Forex - The Governor of the Czech National Bank (CNB), Ales Michl, has called on the government to balance the budget in order to prevent a resurgence of inflation in the future. Michl stated, "Policymakers in Prague want to maintain a hawkish monetary stance to limit borrowing by households, companies, and the state." The CNB paused interest rate cuts last month to assess new data and the economic outlook, noting that further actions will be decided at the next meeting in February. The CNB Governor emphasized, "The biggest inflation risks are the state budget deficit and the excessive amount of money in circulation. We are not in a crisis; therefore, we need a balanced budget. This is the best way to combat inflation."