Daily Summary of the Czech Economy: Industry, CNB, Bitcoin, Construction and Gold (July 9, 2025)

Overview of the latest economic events in the Czech Republic

The Czech economy continues to show steady growth in industrial production and construction, while the central bank is carefully considering the next steps in monetary policy. In May, industrial production rose by 2.2 % yoy, although it fell by 1.6 % m-o-m. The construction sector also recorded strong growth, strengthening by 11.6 % yoy. In particular, residential and civil engineering construction reported higher activity, supporting a recovery in investment activity across regions.

Attention is also turning to the Czech National Bank, which kept the two-week repo rate at 3.75 % and signalled that it would continue to be cautious in cutting rates. The Board is monitoring inflation and the labour market situation, which remains tight. Interestingly, the CBN continues to increase its gold reserves. In the second quarter, it bought 5.75 tonnes of gold, bringing the total stock of gold in its vaults to over 50 tonnes.

Among domestic events, it is worth mentioning the government's decision on the energy stabilisation strategy, which, among other things, confirms the connection of the thermal power supply from the Dukovany Nuclear Power Plant to Brno. This step should help reduce the city's dependence on fossil fuels. In the area of social policy, the Czech Social Security Administration has announced that notifications of pension indexation will now be sent primarily electronically - those who wish to continue receiving letters by post must actively request it.

Significant events outside the Czech Republic with global impact

Interest in risk assets is growing in global markets. The price of bitcoin has crossed the $112,000 mark for the first time in history, signalling a growing appetite among investors to seek alternative valuations beyond traditional currencies and equities. This development may also influence capital flows towards Europe and the Czech Republic.

The US market is waiting for the development of inflation and possible actions of the US central bank (Fed). News of slowing inflation opens up room for a possible interest rate cut in the second half of the year, which could make the dollar cheaper and affect the exchange rate of the koruna against key currencies.

Strong central bank demand for gold persists globally. In addition to the CNB, other countries in Europe and Asia have also increased their reserves, which supports the stability of prices for this commodity.

gnews.cz - GH

Current exchange rates according to the CNB and Google Rates

tradingeconomics.com