All analysis from category Macro comment
Macro comment
State budge for January-March: year-on-year decrease in expenditure
In the first three months of the year, the central government ran a deficit of CZK 105.0 billion. In the same period last year, the budget was in deficit of CZK 166.2 billion. The twelve-month deficit currently stands at CZK 227.3 billion.
Macro comment
CNB: The rapid reduction of interest rates continues
The Banking Council of the CNB decided to cut interest rates by another 50 basis points. The main two-week repo rate will drop to 5.75 percent. The central bank is reacting to the continued decline in inflation, which returned to the inflation target value in February. Lower rates are also required by the current economic situation, when GDP development oscillates between decline and weak growth.
Macro comment
Industry in January: stagnation at the beginning of the year
Industrial production stagnated in January on a year-on-year basis, deteriorated on a month-on-month basis and the start of the year did not bring any improvement in conditions.
Macro comment
Retail sales in January: growth at the beginning of the year
Retail sales had risen year-on-year for the second month in a row in January and it was therefore likely that household consumption was beginning to recover thanks to the fall in inflation.
Macro comment
Consumer prices in February: Smoldering inflation in service prices
The inflation storm may have passed. Only fuel prices and a seasonal uptick in recreation prices increased significantly in February. The consumer price index rose 0.3 percent month-on-month in February, while annual inflation slowed to 2.0 percent.
