- About the CNB
About the CNB
The CNB is the central bank of the Czech Republic, the supervisor of the Czech financial market and the Czech resolution authority. It is established under the Constitution of the Czech Republic and carries out its activities in compliance with Act No. 6/1993 Coll., on the Czech National Bank, as amended.
- Monetary policy
Monetary policy
The Czech National Bank endeavours to keep inflation low, stable and therefore predictable. It achieves its inflation target of 2% by setting interest rates and other monetary policy instruments. The Bank Board decides about them on the basis of a macroeconomic forecast and an assessment of its risks and uncertainties.
- Financial stability
Financial stability
The CNB sets macroprudential policy by identifying, monitoring and assessing risks to the stability of the financial system and, in order to prevent or mitigate these risks, contributes by means of its powers to the resilience of the financial system and the maintenance of financial stability.
- Supervision, regulation
Supervision, regulation
The CNB is the supervisory authority for the financial market in the Czech Republic. It lays down rules safeguarding the stability of the banking sector, the capital market, the insurance industry and the pension scheme industry. It regulates, supervises and, where appropriate, issues penalties for non-compliance with these rules.
- Banknotes and coins
Banknotes and coins
The CNB is the exclusive issuer of Czech banknotes and coins. Circulating banknotes and coins are intended for cash payments. Commemorative banknotes and coins are intended for collection and investment purposes and the CNB sells them through its contractual partners at prices different from their nominal values.
- Payments
Payments
The CNB contributes to preparing draft legislation in the area of payments and clearing between banks, foreign bank branches and credit unions. It promotes smooth and efficient payments and contributes to the safety, soundness, efficiency and development of payment systems.
- Financial markets
Financial markets
The CNB declares the exchange rate of the Czech koruna against other currencies in the form of foreign exchange market rates and in the form of exchange rates of other currencies. This section contains information about the foreign exchange market, the money market and the Treasury securities market, including regulations relating to the financial market in the Czech Republic.
- Resolution
Resolution
The CNB is the resolution authority for banks, credit unions and certain investment firms in the Czech Republic. Resolution means the restructuring of an institution to ensure the continuity of its critical functions, minimise the impacts on the economy and the financial system and restore the viability of all or part of that institution.
- Statistics
Statistics
The CNB in its area of competence compiles and publishes statistics, in particular monetary and financial statistics, balance of payments statistics, supervisory statistics, financial accounts statistics, general economic statistics and government finance statistics. The statistics are compiled in accordance with international standards and the standards of the European Union and the relevant requirements of the European supervisory authorities.
- Research
Research
The objective of the CNB‘s research is to provide outputs which help to expand the knowledge base needed for the core activities of the CNB and which are of a high standard on the international scale. The coordination and implementation of research is carried out by the Research Division, which is part of the Research and Statistics Department.
Real GDP in line with the CNB forecast in 2024 Q2
The CNB comments on the GDP figures for 2024 Q2
According to the CZSO’s estimate released today, real gross domestic product adjusted for price, seasonal and calendar effects went up by 0.6% year on year in 2024 Q2. Compared with the previous quarter, economic activity increased by 0.3%. The new data indicate that the Czech economy is recovering in line with the CNB’s summer forecast overall.
The annual real GDP growth in 2024 Q2 was in line with the CNB’s expectations. The slightly lower quarter-on-quarter growth in Q2 was offset by faster growth at the start of this year. In year-on-year terms, household consumption and the contribution of net exports developed in line with the forecast in Q2. Fixed investment returned to year-on-year growth unexpectedly early. However, this was counteracted by a deeper-than-expected decline in change in inventories. As a result, overall investment activity decreased slightly more than forecasted. Conversely, general government consumption was well above the forecast.
prices of 2020 (chain-linked), seasonally adjusted
The CNB’s summer forecast expects economic activity to increase by 1.2% this year. Inflation close to the CNB’s 2% inflation target amid steady nominal wage growth will foster growth in consumers’ purchasing power. This, together with a decline in the saving rate, will lead to a recovery in household consumption. The forecast expects quarterly growth in private fixed investment amid falling domestic and foreign interest rates. In addition, the contribution of inventories to the annual GDP growth will turn positive again next year. The growth of the Czech economy is dampened this year by the consolidation package, which causes fiscal policy to be restrictive. External demand will start to pick up gradually as Germany’s current economic problems gradually fade. The expected upturn in domestic economic growth to close to 3% in 2025 will be based on domestic demand, above all households’ consumption expenditure and gross capital formation.
Jakub Matějů, Deputy Executive Director, Monetary Department