The Czech National Bank (ČNB) decided to keep its benchmark interest rate flat at a historic low of 0.05 percent. The bank also said it will keep its monetary policy unchanged and use the weakened currency as a tool against deflation until 2016. “Without the intervention, consumer price developments would be in negative territory,” said ČNB Governor Miroslav Singer at a briefing.
Annual inflation in August was 0.6 percent, slightly up from 0.5 percent in July. In the first half of the year it was slightly above zero. The central bank’s annual inflation target is 2 percent.
