The Prague Stock Exchange continued its growth from Friday, with the PX index rising by 0.35 percent. The markets are also closely watching the key meeting of the Czech National Bank (CNB) on Thursday, where there is a possibility of an increase in the base interest rate for the first time since the appointment of Governor Michal, in response to the recent increase in interest rates by the European Central Bank (ECB). In the tender for suburban trains in Prague, RegioJet and České dráhy submitted bids, while Arriva withdrew.

The Prague Stock Exchange continued its growth from Friday. The PX index rose by 0.35 percent to 2,571.13 points, mainly driven by banking stocks, particularly Erste Bank. Market activity was significantly above average due to increased trading in ČEZ shares, which nevertheless fell by almost three percent.

In the tender for the operation of suburban trains in Prague and the Central Bohemian Region, two companies submitted final bids. RegioJet offered a price of 183.65 billion crowns, while České dráhy offered 165.17 billion crowns. Arriva ultimately did not submit a bid.

The Bank Board of the CNB will meet on Thursday, June 18, and the markets are eagerly awaiting the outcome. Analysts agree that the Bank Board will choose between leaving the base interest rate at the current 3.5 percent and increasing it by a quarter of a percentage point to 3.75 percent. Governor Aleš Michal himself did not rule out a possible increase in interest rates on Friday. The Czech economy is facing domestic inflationary pressures, including strong wage growth, persistent increases in the cost of services and housing, and an expansion of the money supply. Any increase would be a calibration of the degree of restriction, not a fundamental shift in monetary policy.

The European Central Bank raised interest rates by 25 basis points last week. Effective June 17, 2026, the deposit facility rate rose to 2.25 percent, the main refinancing operations rate to 2.40 percent, and the marginal lending facility rate to 2.65 percent. This was the first increase since 2023, and the main reason is inflationary pressures caused by the war conflict in the Middle East. The markets currently expect two more increases during the course of 2026.

The ECB's interest rate increase is beginning to be reflected in mortgage prices. Domestic mortgage loans are linked to the price of money on the European interbank market, and banks are incorporating the expected increase from the ECB into more expensive mortgages—the average value of the Hypoindex rose to 5.30 percent.

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