Brexit delay gives a small window for Czech rate hike

Bloomberg

The delay to Brexit has potentially given the Czech central bank a small window to raise borrowing costs this year as it tries to put a lid on price growth before the economy slows, board member Tomas Holub said.
After leading Europe with five interest-rate hikes last year, policy makers in Prague will most likely deliver only one in 2019, Holub said in an interview. The delay of the UK’s departure from the European Union — possibly until October — has taken pressure off of global markets and lets the Czech central bank focus on domestic price pressures. Its next two to three meetings may be the best time to act before risks can reemerge, he said.
“If we need to increase interest rates, it would make more sense to do so in the first half of the year rather than later when we’re uncomfortably close to Brexit again,” Holub said.