MNI CNB Review - Aug 2026: Snapping Back To Wait-And-See

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Executive Summary:

• In a unanimous vote, the Bank Board kept the repo rate at 3.75%.
• The balance of risks was again assessed as ‘inflationary overall’.
• Communication indicated lack of urgency to tighten policy further.

The Czech National Bank left the two-week repo rate unchanged at 3.75% in a unanimous decision and signalled that the previous 25bp hike delivered the required amount of monetary tightening. While Governor Michl left all options open for future meetings, the Bank Board signalled that it was moving into a period of evaluating incoming data, which would imply a pause in monetary policy action.