The Czech central bank is expected to stop its monetary easing soon, keeping interest rates steady for a prolonged period in order to bring inflation back to target levels.

Governor Ales Michl noted that although inflation had previously slowed down to near the 2% goal, recent trends indicate a temporary acceleration, with projections suggesting it may surpass 3% in the coming months.

The central bank's latest forecast emphasizes that core inflation, which reflects underlying domestic demand pressures, is still a concern and not yet fully under control. This outlook has led to the Czech koruna gaining value, reflecting market reactions to the expected policy stance.