"Excessive Hawkishness". The Czech National Bank has tightened its stance, Babiš is angry. His minister has also weighed in.

The Czech National Bank has raised its base interest rate to 4%, a move criticized by Prime Minister Andrej Babiš, who argues it will lead to higher loan costs. Babiš's finance minister described the decision as excessive hawkishness, while the bank defends it as necessary to combat inflation risks. The increase comes amid rising energy prices and geopolitical tensions, impacting the economy. Economists warn that higher rates will make loans more expensive for households and businesses, complicating the government's promise of cheaper housing loans. The average mortgage rate has already risen significantly, reflecting broader economic challenges.