(Bloomberg) -- The Czech central bank must focus on curbing inflation to prevent high consumer-price growth from becoming entrenched in the economy for long term, policy maker Vojtech Benda and board adviser Jakub Mateju wrote in an opinion column published in the Pravo newspaper on Saturday.
The Czech National Bank isn't trying to suppress external shocks, such as rising energy and commodity costs, but higher interest rates are cooling domestic demand and support savings, according to Benda and Mateju. They said the annual March inflation rate will be near 13% or “maybe even higher.”
Read more: Czechs Hike Rates to Two-Decade High And Signal More Is to Come
“Restoring price stability is now an absolute priority for the CNB,” Benda and Mateju said. “Even though the Czech economy is now facing complicated times, the CNB must focus primarily on taming inflation.”
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