At yesterday’s meeting, the CNB board unanimously decided to leave interest rates unchanged. According to Governor Michl, the CNB is in a favourable position, as monetary policy remains slightly restrictive and inflation is below the central bank’s target. He also stated that the recent rise in energy commodity prices does not pose a significant risk to achieving the inflation target. The governor’s focus on core inflation trends suggests that the CNB may disregard the impact of higher oil prices in its policy. Therefore, a rate hike does not appear to be on the cards. However, persistent inflationary pressures from the domestic economy, compounded by the risk stemming from higher energy commodity prices, argue against a rate cut. Consequently, we are leaving our CNB interest rate forecast unchanged, expecting rates to remain stable until the end of the year.