The CNB Bank Board meets today and analysts unanimously expect the key rate to be left at 3.75 percent. Czech exports of military material last year rose 22.7 percent year-on-year to CZK 112.6 billion, with the most licenses directed to Ukraine. Retail sales in June slowed their year-on-year growth to 3.6 percent. The CNB has established a new artificial intelligence department to accelerate the deployment of AI solutions at the central bank. The Czech Statistical Office will release data on industrial output and foreign trade for June.
The CNB Bank Board is meeting today for its monetary policy session. Raiffeisenbank analysts note that upside inflation risks persist in the Czech economy — a tight labor market, rapid property price growth, loose fiscal policy, and fast-rising services prices. The CNB will therefore need to remain maximally cautious. Markets and analysts nonetheless unanimously expect rates to stay at the current 3.75 percent, the level to which the central bank raised them in June.
Czech exports of military material rose nearly a quarter last year — up 22.7 percent to CZK 112.6 billion. This follows from the annual report on foreign trade in military material for 2025, published by the Ministry of Industry and Trade. The ministry granted 1,895 licenses last year for the export of military material to 98 countries, with a total value of almost CZK 138 billion. The most licenses were once again granted for Ukraine.
Retail sales in the Czech Republic, excluding sales and repairs of motor vehicles, slowed their year-on-year growth in June from 4.8 percent in May to 3.6 percent. The Czech Statistical Office made the announcement. The slowdown reflects the gradual fading of the consumer boom following a strong first half of the year and growing household caution in an environment of higher interest rates.
The CNB has established a new artificial intelligence department, aimed at accelerating the deployment of AI and machine learning solutions and supporting the central bank's development toward innovative technologies. The department will be led by Janis Aliapulios, currently an advisor to the CNB Bank Board, effective August 1, 2026.
The Czech Statistical Office will publish data on industrial output and foreign trade for June 2026. The results will be watched as a barometer of the Czech economy's health in the second quarter, particularly with regard to export trends in an environment of slowing European demand.
gnews.cz - GH