September 26, 2022
Czech central bank choices offer no carte-blanche for dovish governor

PRAGUE, June 8 (Reuters) – The Czech president has filled three seats on the central bank’s board with economists who are likely to ease market worries about a sharp dovish swing after the current board raised interest rates to tame the highest inflation in nearly three decades.

The appointments to the Czech National Bank (CNB) announced on Wednesday include two former central bankers, a choice adding predictability, and follow a surprising choice last month of board member Ales Michl as new governor from July.

Michl has opposed the bank’s 550 basis-point interest rate rise over the past year amid one of Europe’s biggest inflation spikes, saying price growth was mainly imported.

Incoming Vice-Governor Eva Zamrazilova praised the bank’s interest rate hikes as timely and necessary at a ceremony on Wednesday to announce the appointments, but said any further steps required deep analysis.

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