Summary of the most recent forecast by the Czech National Bank:

• Headline inflation will stay in the upper half of the tolerance band this year and return to the 2% target at the start of next year. Monetary policy-relevant inflation, i.e. inflation adjusted for the first-round effects of changes to indirect taxes, will be very close to headline inflation.
• The growth of the Czech economy will accelerate visibly above 3% this year and will stay slightly above 3% in the following two years.
• The domestic economic activity will be driven mainly by robust growth in household consumption, continuous growth of foreign demand and gradual renewal of government investment co-financed from EU funds.
• Growing labour demand will, in combination with the lack of available workforce, result in an accelerated growth of wages.
• he koruna will appreciate further against the euro (positive interest rate differential, quantitative easing by the ECB and renewed real convergence).
• The monetary conditions will continue to shift towards a neutral stance.
• Consistent with the forecast is an increase in domestic market interest rates in 2017 Q3 and subsequently also in the following two years. More.