CNB Minutes (Mar): Ready to tighten policy if core inflation rises, agreed a rate hike is premature now

• The Bank assessed the risks and uncertainties of the outlook for the fulfilment of the inflation target as balanced overall.
• The external shock had hit the Czech economy in a situation of low inflation and relatively high interest rates. This provided a buffer for absorbing the inflationary shock. 

Governor Michl:

• Necessary to keep monetary policy tight and not underestimate the cost shock.
• Hawkish policy was in order.