Czech Central Bank Chief Embraces Tight Policy, Austerity.

The Czech Republic's central bank chief advocates for maintaining higher interest rates post-pandemic to prevent a cost-of-living crisis, attributing lingering inflation to loose monetary policies. Ales Michl emphasizes the importance of government budget discipline to avoid a potential second wave of inflation. Amid economic uncertainty, European policymakers are cautious about trade conflicts, while Michl plans to increase the central bank's gold holdings to diversify reserves and reduce volatility. The Czech currency has shown resilience compared to regional peers, reflecting a cautious approach to economic stability. [Extracted from the article]