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| Czech central banker: economic outlook ‘pessimistic’ but coronavirus impact can be mitigated |
| Prag, 06.04.2020 |
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| To counter the economic impact of the coronavirus, the Czech National Bank has twice this month cut interest rates, which now stand at 1 percent. But it has balked at quantitative easing – even though central bank governor Jiří Rusnok says the most pessimistic economic forecasts are the most realistic. The proverbial “rainy day” everyone it told to save up for it likely to be a prolonged, torrential downpour. Such is the forecast over the coming quarters, Jiří Rusnok told Czech Radio on Thursday, after the central bank cut its main rate a further 75 basis points.
“Everything indicates that the economic impact of the epidemic and the near halting of all economic life will be great … In any case, the most realistic scenarios are unfortunately the most pessimistic. They indicate that there will be a decline in economic growth of around 5 percentage points, perhaps more.”
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