That would lead to markedly lower economic performance ... and thus there would probably be smaller need for tightening of monetary conditions when it comes to the setting of interest rates.
The bank said its forecast assumed around three standard 25 basis-point interest rates increases later this year.
PRAGUE: A longer duration of anti-pandemic measures than expected in the Czech central bank's new quarterly forecast could lead to less need for tightening of monetary policy, Governor Jiri Rusnok said on Thursday.
"That would lead to markedly lower economic performance ... and thus there would probably be smaller need for tightening of monetary conditions when it comes to the setting of interest rates," Rusnok told a news conference after the board voted unanimously to keep the main repo rate at 0.25%.
The bank said its forecast assumed around three standard 25 basis-point interest rates increases later this year, but the board saw substantial risks to the forecast due to the possible worse development of the pandemic.
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