News
June rate hike likely to signal CNB’s readiness to fight inflation
The Czech National Bank (CNB) is likely to raise interest rates next Wednesday. This follows on from statements made by the bank board, indicating that five of the seven board members voted for a rate hike in June. According to the central bankers, inflation remaining above the two-percent target for more than two years is the main reason for early policy tightening. They especially mention a possible adverse impact on inflation expectations. A 25bp increase in June should therefore signal that the CNB is ready to fight higher inflation. However, we do not expect the repo rate to move above 1% at the end 2021.
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A change for most companies: incorrectly defined line of business
In keeping with many years of established practice, most companies have "Manufacture, trade and services not specified in Annexes 1 to 3 of the Trade Licensing Act" listed as their line of business in their bylaws or articles of association, without being more specific. If this is you, please read on!
Michal Chour, AmCham CZ President: We are willing to put in the work, and take the risks, required to become The Country for the Future
Prague's economy faces 3 challenges as we emerge from the pandemic.
Inflation is slowing due to lower food prices
Contrary to expectations, inflation slowed in May and returned to the CNB forecast in year-on-year terms. The main reason for the slowdown in inflation was the fall in food prices. On the other hand, prices of services rose after the easing of anti-epidemic measures, and core inflation accelerated slightly month-on-month. Despite slower headline inflation, speculations about an early increase in CNB interest rates are unlikely to fall significantly.
5 reasons global shipping costs will continue to rise
Shipping costs have risen sharply and fierce competition for ocean freight capacity is the new normal. With new capacity only slowly coming onstream, freight rates are expected to continue to reach new highs this year and will remain above their pre-pandemic levels in the longer term
Strategic Directions for Czech Economic Policy
- Transition to High-Tech Manufacturing and Exports
- The City Campus as Idea Factory
- Government Programs and Processes That Drive Innovation
- Government as a Competitive Advantage, including Digitization
Advocacy Priorities for 2023
Technology, People, Infrastructure
Actions Recommended in Areas:
1. Establishing Policy Objectives for Research.
2. Research Investment and Cooperation. Big Bets (Key Technology Projects).
3. Establishing Databases for Tracking Public Policy Outcomes.
4. Public Procurement as an Innovation Tool.
5. Immigration of STEM Talents.
6. Digitization of Immigration.
7. Adult Reskilling and Upskilling.
8. Digitization of Land Use.
9. Infrastructure Development, including Technology Parks.
Read the documents in English and Czech.
Policy pipeline
In Policy Pipeline policy developments in the Czech Republic and abroad are monitored to bring better understanding of current topics and trends.
