View the overall monetary policy and inflation, compared with the previous forecast decreased slightly. The forecast for this year’s growth of the Czech economy is slightly revised upwards. For the next two years, by contrast, growth forecasts slightly reduced, in response to the worsening outlook of foreign demand and weaker growth in private investment. After leaving the exchange rate commitment, which continues to forecast expected in mid-2017, interest rates are rising more slowly than in the previous forecast.
The Board assessed the risks of the forecast inflation at the monetary policy horizon as balanced. The uncertainties of the forecast include the refresh rate of growth of government and corporate investment, the impact of the election cycle on expenditure in the discretion of the government, the impact of the outcome of the referendum in the UK and the future of the monetary conditions major central banks.