# Czech central bank vice-gov unlikely to vote for rate cut -newspaper
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-09-22
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Czech National Bank Vice-Governor: No Rate Cut Expected
Meta Description: Vice-Governor Eva Zamrazilova expects inflation to persist, keeping rates stable. No easing until inflation heads firmly towards 2% target.
URL: https://financedigest.com/czech-central-bank-vice-gov-unlikely-to-vote-for-rate-cut-newspaperhtml

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PRAGUE (Reuters) – Czech National Bank Vice-Governor Eva Zamrazilova is not likely to vote for a rate cut this year as she expects little chance of inflation slowing in a sufficient way, local media quoted Zamrazilova as saying on Wednesday.

The central bank kept its main interest rate unchanged at 7.00% in August, after hiking by a total 675 basis points since June 2021. It was the revamped board’s first meeting under new Governor Ales Michl, who had opposed policy tightening as a board member.

Zamrazilova, one of three new faces among the seven board members, [voted for stable rates](https://www.financedigest.com/bank-of-england-raises-rates-in-8-1-vote.html "Bank of England raises rates in 8-1 vote") on Aug. 4, and she told Reuters last week she would probably maintain her stance at the Sept. 29 meeting.

When [asked by Denik N daily paper](https://www.financedigest.com/camradata-asks-does-style-matter-in-a-new-white-paper-on-investment-styles.html "CAMRADATA asks ‘Does style matter?’ in a new white paper on investment styles") how she was going to vote next week, Zamrazilova said no inflationary information had appeared since the last policy meeting.

She also reiterated that in order to consider a [rate cut](https://www.financedigest.com/interest-rates-are-cut-to-an-all-time-low-what-will-this-mean-for-small-businesses.html "Interest rates are cut to an all-time low. What will this mean for small businesses?"), inflation heading towards the central bank’s 2% target would have to be clear and lasting.

Until there is certainty that inflation is [heading reliably not only towards](https://www.financedigest.com/are-we-headed-towards-a-banking-as-a-service-revolution.html "Are we headed towards a Banking as a Service revolution?") one-digit levels, but right towards 2%, until then we cannot consider easing of monetary policy,” she said in the interview published on Thursday.

When asked whether such development could be [expected this year](https://www.financedigest.com/synechron-continues-to-shine-with-expected-record-revenue-growth-of-28-amounting-to-405m-in-the-financial-year-2016-17.html "Synechron continues to shine with expected record revenue growth of 28% amounting to 5m in the financial year 2016-17"), Zamrazilova said the chances were “negligible.

Although inflation slowed in August for the first time in over a year, it was still very far from the [central bank’s](https://www.financedigest.com/inflation-trumps-financial-risks-as-central-bank-tightening-set-to-continue.html "Inflation trumps financial risks as central bank tightening set to continue") target as it came out at 17.2%, made worse by surging energy costs following Russia’s invasion of Ukraine.

(Reporting by Robert Muller; Editing by Josie Kao)


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