• Komerční banka cut its 2026 Czech GDP growth forecast to 1.7% from 2.1%, citing weaker activity and the Middle East conflict.
• The 2027 growth forecast fell to 2.3% from 2.6%, with household consumption and investment remaining the main drivers.
• Inflation is forecast to accelerate to 3% from 2.1% in 2026, driven by higher energy and food prices.
• The CNB is expected to raise its 2W repo rate to 4% in November, holding it through the end of 2027.
• Tighter financial conditions are expected to slow lending growth next year, with mortgage cooling continuing and corporate borrowing facing constraints.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Komercní banka a.s. published the original content used to generate this news brief on October 29, 2026, and is solely responsible for the information contained therein.