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Czech interest rates already at high level, central bank governor says
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PRAGUE (Reuters) – Czech interest rates are already at a high level that is dampening domestic demand pressures, central bank Governor Ales Michl said on Monday.
PRAGUE (Reuters) – Czech interest rates are already at a high level that is dampening domestic demand pressures, central bank Governor Ales Michl said on Monday.
Michl said in a series of Twitter posts that three necessities were needed for reducing inflation: reducing state debt; preventing a wage inflation spiral; and keeping and stabilising interest rates at a higher level that what was seen in the past 10 years.
(Reporting by Jason Hovet)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is often measured by the Consumer Price Index (CPI).
Interest rates are the amount charged by lenders to borrowers for the use of money, typically expressed as a percentage of the principal. They can influence economic activity.
A central bank is a national institution that manages a country's currency, money supply, and interest rates. It also oversees the banking system and implements monetary policy.
A wage inflation spiral occurs when rising wages lead to increased consumer spending, which in turn drives up prices, prompting further wage increases in a cycle.
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