CNB Minutes: Domestic and external factors at odds

AI Summary

Czech policymakers face inflation concerns from domestic tight labor and housing markets, while foreign economic risks threaten future activity. Imputed rents are a significant inflation driver, with scenario analysis used for policy understanding.

Czech policymakers still view domestic factors as inflationary, while the foreign environment poses risks to future economic activity. Tight labour and housing markets are seen as the main concerns. Indeed, imputed rents remain a key driver of core inflation. We therefore use scenario analysis to gain a better understanding of the matter Wait and see ...