CNB Deputy Governor Eva Zamrazilova said that Czechia needs rates at "tight levels" for longer, albeit headline inflation should reach the target in 1H2024.

• The official noted that "there are always risks" but the central bank is now "firmly convinced" that inflation should reach the target in the first six months of next year. She added that she still expects "inflation starting with three" in January.
• Zamrazilova said that bringing the key interest rate to its neutral level of around 3.0-3.5% will take some time as core inflation is expected to remain elevated throughout next year. Hence, rates will stay higher for longer.