Babiš surprised with a plan to sell more mortgages. And he harshly criticized the banks

Prime Minister Andrej Babiš criticized banks for high mortgage rates, claiming they are excessively profitable compared to other countries. He proposed a new plan to support young families by potentially eliminating the down payment requirement for mortgages, which could be guaranteed by the state. Babiš highlighted that banks' return on equity in the Czech Republic is significantly higher than in Germany. Despite rising mortgage costs, economists argue that banks' rates are influenced more by long-term bond yields than the central bank's short-term rates. The government is under pressure as mortgage rates have increased for seven consecutive months, impacting monthly payments significantly.