Czechs to Hold Rates as Policymakers Tout Inflation Buffer

Czech policymakers are poised to keep interest rates on hold as inflation running below target provides a cushion against the immediate impact of surging oil costs.

The central bank will keep the benchmark at 3.5% for a seventh meeting on Thursday, according to all analysts in a Bloomberg survey. Before the war in Iran erupted, officials had discussed potential cuts after headline price growth eased to the slowest pace in about a decade, but the Middle East turmoil pushed market expectations in the other direction.