The Czech National Bank maintained its two-week repo rate unchanged at 3.75% in September 2026, as expected, pausing for a second straight meeting. The annual inflation rate quickened to 1.9% in August, the highest since May, up from 1.7% in July, but remained below the central bank’s target of 2%. Still, policymakers cited several sources of inflationary pressure, including resilient domestic demand, strong wage growth, robust credit expansion and an expansionary fiscal stance. They also noted that the base effect from energy subsidies could turn less favourable, reversing some of their earlier downward contribution to inflation. Moreover, the fallout from the Iran conflict and elevated energy prices continued to pose significant risks to the inflation outlook.