The Czech National Bank raised its interest rates by 25 BPS on Thursday, pretty much as predicted. The bank’s council voted unanimously on the move and warned that it couldn’t rule out another increase at its next meeting. This piece of bad news, for those about to take out mortgages or other loans, spells good news, at least for the near future. Because in announcing the rate hike, the CNB also revealed that its growth predictions for GDP growth this year had risen to 4.5 percent. In other words, the bank is now worried that the economy is overheating. With the country running out of labor and wages, at least in some sectors, jumping dramatically, it’s hard to argue the point.
