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Significance

Hampl was interviewed on August 29, after the CNB announced its first rate rise in more than nine years on August 3. He said faster growth made debating further monetary policy tightening "relevant". A gradual period of normalisation in monetary policy across Central Europe (CE) seems to be under way.

Impacts

The CNB could raise rates sooner than expected if there is an unexpected rise in capital outflows.

In Poland, weak core inflation is expected to encourage the central bank to retain its 'wait and see' stance regarding future rate rises.

Hungary's central bank may be the last in the region to hike interest rates; no change is expected before mid-2018.

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