The Czech National Bank could raise its interest rates twice by the end of the year, said the bank’s governor, Jiří Rusnok, in an interview with Reuters. The bank’s council raised the basic interest rate by a quarter of a percentage point to 1.25 percent in August. Mr. Rusnok stated that a further increase could come as early as this month.
Secondary-school graduates in the Czech Republic earn about one third more during their lifetimes than do graduates of vocational schools and about 60 percent more than people with basic education, suggests a new study carried out by the Czech Republic’s Agency for Social Inclusion, quoted by the daily Mladá Fronta dnes.
The Czech Republic has been among the EU’s top budget performers, running overall fiscal surpluses in the past two years on the back of an economic boom and a fall in unemployment to under 3 per cent – the lowest level in the bloc. So why is the government now looking to run deficits at a time of slowing growth?