CNB Governor Michl says they must ensure that real interest rates remain positive to prevent a repeat of inflation post COVID

Governor Michl's emphasis on maintaining positive real interest rates is a clear sign of the Czech National Bank's intent to combat inflation pressures effectively.

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CNB Governor Michl says they must ensure that real interest rates remain positive to prevent a repeat of inflation post COVID

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This dovish stance reinforces the idea that they are prioritizing long-term price stability, which could influence expectations for future monetary policy and affect cross-asset dynamics, particularly in local bonds and the Koruna.

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