The Czech National Bank kept its two-week repo rate unchanged at 3.5% in April 2026, as widely expected, reinforcing a cautious policy stance. This follows recent communication from the central bank that it does not intend to rush into further monetary tightening, despite rising inflation. Policymakers are still assessing inflationary pressures from higher energy prices and monitoring potential second-round effects, alongside downside risks to growth from geopolitical tensions and softer global activity. Preliminary data showed headline inflation accelerated for a second month in April, reaching a six-month high of 2.5% and edging above the central bank’s 2% target. The central bank said its forecasting model suggests monetary tightening in the second quarter.