Czech central bank predicts further rate hikes

The Czech National Bank will increase interest rates if its macroeconomic forecast is correct, minutes of latest policy meeting, released on Friday 3 August, revealed.

The minutes noted that "a majority of the board members agreed on the need for another interest rate increase if the current forecast was met."

The central bank's forecast predicts that inflation will rise above the upper limit of the inflation target band by the second half of 2008 if left unchecked. Strong domestic demand and

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