Czech Central Bank Governor Ales Michl has emphasized the need for tighter monetary policies and budget austerity to address persistent inflation.

Michl believes that global interest rates should remain higher than pre-pandemic levels, as loose monetary policies over the past decade have led to an excess of money in the economy, contributing to current price pressures.

Despite the Czech National Bank's recent decision to implement its eighth consecutive interest rate cut, officials have indicated that they are approaching the end of this easing cycle.

Michl's comments highlight the ongoing challenges faced by central banks worldwide as they strive to manage inflationary pressures and stabilize their economies.